fishwithwings Posted July 31, 2018 Share Posted July 31, 2018 Anyone know which properties the company owns and which ones they lease? Link to comment Share on other sites More sharing options...
porcupine Posted January 9, 2019 Share Posted January 9, 2019 I think it's possible that we see a special dividend coming soon. Al Scheid (founder and chairman) owes the company $3.6 mil by October 1st, 2019. Al and Scott Scheid informed investors in the shareholder letter from June 19th that they were planning on selling a few properties that were recently annexed and rezoned into Greenfield. After doing some digging, it looks like 47 acres are now zoned as low density residential, 66.99 as heavy industrial, and 22.95 as highway commercial. In the past when they have done this, the value of the properties were sold for a "handsome profit". I'd imagine that the price per acre of this type of zoning is higher than that for a vineyard or pasture. I think these properties may be worth as much as $15 mil. Al owns 17.8% of the company. I think there is an incentive for him to issue a dividend to shareholders with some or all of the proceeds from these properties (after they're sold, of course) so he can use the cash to pay off some of his outstanding debt. Or he can just roll it over. Who knows. Link to comment Share on other sites More sharing options...
porcupine Posted January 22, 2019 Share Posted January 22, 2019 Did a write up on this company. Seems like there is plenty of room to grow revenue and expand margins based on the strategy they seem to be undertaking. They're shifting from selling bulk wine to selling their own brands, which demand a much higher price per gallon than bulk wine. https://lowtideinvestments.com/2019/01/21/scheid-vineyards-inc/ Link to comment Share on other sites More sharing options...
iambagman Posted January 22, 2019 Share Posted January 22, 2019 Nice writeup, while the company is coming out of the dark, financial statements are often hard to find. Here is a link to the latest posted on OTC markets https://backend.otcmarkets.com/otcapi/company/financial-report/210422/content One really small point - the note you mentioned to Al Scheid is covered on page 11 - it pertains to a life insurance policy on him to the benefit of the company. I don't think any decision to have a special dividend etc. will not be driven by the note Link to comment Share on other sites More sharing options...
porcupine Posted January 22, 2019 Share Posted January 22, 2019 Nice writeup, while the company is coming out of the dark, financial statements are often hard to find. Here is a link to the latest posted on OTC markets https://backend.otcmarkets.com/otcapi/company/financial-report/210422/content One really small point - the note you mentioned to Al Scheid is covered on page 11 - it pertains to a life insurance policy on him to the benefit of the company. I don't think any decision to have a special dividend etc. will not be driven by the note Nice catch. I took it as a loan against the value of the insurance that Al had purchased. Link to comment Share on other sites More sharing options...
iambagman Posted January 23, 2019 Share Posted January 23, 2019 Another small point, my understanding is that it takes significant capital to develop an acre of vineyard from irrigation, to scaffolding to grow the grapes on (sure there is a more technical term), to the actual vines. The company leases 1800+ acres on a long term basis - there is value in those improvements. At $15,000 per acre for 1800 acres on less than 900,000 shares outstanding - it starts to add up can be $30+ per share. Maran capital touches on it in their presentation (page 39) https://static1.squarespace.com/static/54cd02c2e4b0c5c90af010e7/t/5a6697d2c8302557d79d0089/1516672988787/Maran+Cap+SVIN+Pres+Jan+2018.pdf Link to comment Share on other sites More sharing options...
porcupine Posted April 5, 2019 Share Posted April 5, 2019 Big developments for the upside thesis. Benchmark Hospitality runs ~46 properties across the US. https://www.hospitalitynet.org/news/4092632.html Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted July 2, 2019 Share Posted July 2, 2019 Oddball Stocks makes a good case that Scheid is just a bad business: http://www.oddballstocks.com/2019/07/do-disappointing-scheid-vineyards.html Link to comment Share on other sites More sharing options...
Spekulatius Posted July 2, 2019 Share Posted July 2, 2019 Oddball Stocks makes a good case that Scheid is just a bad business: http://www.oddballstocks.com/2019/07/do-disappointing-scheid-vineyards.html A $9/ share GAAP loss for a $65 stock is something to sneeze at. Link to comment Share on other sites More sharing options...
BG2008 Posted July 2, 2019 Share Posted July 2, 2019 When investing in sum-of-the-parts thesis, it is important to invest in companies that are growing that SOTP value overtime if there is no chance of liquidation Link to comment Share on other sites More sharing options...
porcupine Posted July 2, 2019 Share Posted July 2, 2019 Oddball Stocks makes a good case that Scheid is just a bad business: http://www.oddballstocks.com/2019/07/do-disappointing-scheid-vineyards.html A $9/ share GAAP loss for a $65 stock is something to sneeze at. Indeed. Awful year. Case sales were extremely disappointing, as these sales are the basis for the long-term thesis. Looking forward to seeing FY 2020 case sales with the increased sales effort and announced partnerships. Link to comment Share on other sites More sharing options...
writser Posted July 2, 2019 Share Posted July 2, 2019 Isn't the long-term thesis that the owners sell this to another rich man who wants a hobby at a very juicy price / acre? Consider me skeptical about the economics of the vineyard itself. Link to comment Share on other sites More sharing options...
Spekulatius Posted July 2, 2019 Share Posted July 2, 2019 Isn't the long-term thesis that the owners sell this to another rich man who wants a hobby at a very juicy price / acre? Consider me skeptical about the economics of the vineyard itself. Yes, owning a vineyard is similar to owning a sportsteam, horses etc. in this sense - they are status symbol he super Rich and give them something to do. Scheid vineyards may not be good enough in terms of quality to be bought as a celebrity toy though. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted July 2, 2019 Share Posted July 2, 2019 If someone is (1) interested in this space and (2) only managing their personal account, I think they would be better off trying to buy a few shares of the (brutally illiquid) CAOX, which is more of a landlord than it is a vineyard operator (over 50% of its owned acreage is leased to 3rd parties). Link to comment Share on other sites More sharing options...
writser Posted July 2, 2019 Share Posted July 2, 2019 If someone is (1) interested in this space and (2) only managing their personal account, I think they would be better off trying to buy a few shares of the (brutally illiquid) CAOX, which is more of a landlord than it is a vineyard operator (over 50% of its owned acreage is leased to 3rd parties). I have nothing to add. Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted October 22, 2019 Share Posted October 22, 2019 Greenhaven Road is still in this, with the thesis being that it's trading @ ~30% of NAV. https://static1.squarespace.com/static/5498841ce4b0311b8ddc012b/t/5daa7eaeab96a61181bef76f/1571454639744/Greenhaven+Road+Letter+%282019+Q3%29.pdf While it is undoubtedly too small/illiquid for Greenhaven, I continue to believe that CAOX is a better deeply discounted CA vineyards play than SVIN. CAOX leases a big chunk of its land to SVIN -- I know which side of that transaction I'd rather be on. Link to comment Share on other sites More sharing options...
Spekulatius Posted October 22, 2019 Share Posted October 22, 2019 Greenhaven Road is still in this, with the thesis being that it's trading @ ~30% of NAV. https://static1.squarespace.com/static/5498841ce4b0311b8ddc012b/t/5daa7eaeab96a61181bef76f/1571454639744/Greenhaven+Road+Letter+%282019+Q3%29.pdf While it is undoubtedly too small/illiquid for Greenhaven, I continue to believe that CAOX is a better deeply discounted CA vineyards play than SVIN. CAOX leases a big chunk of its land to SVIN -- I know which side of that transaction I'd rather be on. Well just a simple look into the latest bag holder report should remove all doubt where not to put any money: https://backend.otcmarkets.com/otcapi/company/financial-report/231867/content Link to comment Share on other sites More sharing options...
trying to improve Posted July 23, 2020 Share Posted July 23, 2020 Scheid Vineyards reported earnings for quarter ending May 31st, 2020 Lost approximately $2.4 million ($2.70/share) vs $2.8 million loss ($3.15/share) same quarter from prior year Link to comment Share on other sites More sharing options...
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