This “Bombed Out” Winemaker could Triple in 12 months!
May 2nd, 2008 | By Tom Bulford | Category: Stock Market InvestingYesterday’s Penny Sleuth was all about the UK’s evolving taste for exotic food… and what’s the thing you always have with it? Wine. Cue a fantastic opportunity! But this is no ordinary company making ordinary plonk you buy in the supermarket.
This stuff is the vintage of the famous Napa Valley, California… hand-blended from a noble mix of specially grown Bordeaux vines, the very same stuff served in the White House to the world’s most prestigious guests.
Even so, it’s had a tough time of late. For reasons you’re about to see their share price nosedived a couple of years back.
But they’re back on track and I think they present a golden opportunity for quick-thinking profit seekers.
I’m not kidding… their share price could go BALLISTIC in the next 12 months if everything goes to plan.
How much do I think the share price could shoot up? Find out here.
Behold the power of ‘recovery plays’
I was a wild-eyed trader for Mullens & Co when I first discovered the money-making power of ‘recovery play’stocks…
Situations where, for whatever reason – an unexpected drop sales; the sudden loss of a few major contracts; a management blunder; an accounting cock-up – a firm’s profits (and share price) have taken a major hit.
Take Reuters… the financial info provider was a dead company walking in March 2003 when shares fell 80% to 96p. After serious management surgery, Reuters breathes still - and the shares have recovered 557%.
And what about Next? It was curtains for the clothing retailer in the 90’s when shares slumped to 12.5p. Today a Next share costs £12.27… a miraculous 9,716% return from the grave!
It’s fairly clear… companies in trouble - which are misjudged by the market - can be prolific money-makers if they successfully turn things around.
And that’s exactly why I believe the fine winemaker I’d like to reveal to you today is MASSIVELY undervalued.
After 14 years of sound management, good profits and a £28 million AIM valuation… along comes this company’s ‘annus horribilis’…
In 2006 in steps a new chief exec.
Within one year he managed to wreck relations with their biggest distributors… reverse their record of exceptional growth… and run up a loss of $6 million on sales that were DOWN by 14%.
Today their market cap stands at £3.93 million.
But get ready for the rebound of the century!
I believe we’re about to witness an exceptional comeback with this stock. Okay, it’s a tiny, tiny company. The risks are high. And I would only recommend a miniscule percentage of your capital to be put on this. But if it comes off the rewards could be spectacular!
Investors who buy in now could be laughing in a year’s time!
You see, the original backer of the business has taken back the reins… and boy is he fired up!
He’s already mended relationships with their distributors, which accounts for over 60% of this winemaker’s sales… and he’s shored up the company’s finances with the sale of valuable land and assets in a deal that gives them an option to buy it all back at a cut price five years down the line.
Results from 2007 ALREADY show they are back on track!
The management’s improved no end too… new financing arrangements have reduced debt… and after a strong Christmas period and a good start to 2008 there are NO signs of the wider economic climate affecting sales.
I’ll be revealing the identity of this corking winemaker in my next edition of RED HOT PENNY SHARES, which hits doormats first thing tomorrow.
But you can read about it right away!
To find out what you need to do, and EXACLTY how much I believe this share could make, click here NOW.
Tom Bulford
for The Penny Sleuth
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Editor of Red Hot Penny Shares, Tom Bulford worked as a fund manager in London and Hong Kong for more than 20 years. Responsible for £2bn of foreign clients' money, he also launched what became Argentina's largest mutual fund.
Now working from his home in Oxfordshire, Tom keeps subscribers up to date with his free small cap market news e-letter, The Penny Sleuth.