Foster’s beer company recently spun off its wine division called Treasury Wine Estates. Often, companies spun off are highly ignored and unfollowed. Spinoffs also can create short term supply and demand imbalances. Treasury Wine Estates is simply a integrated wine company. They own valuable wine producing land as well as the equipment to manufacture product. Treasury Wine Estates is the second largest wine company in the world. There is very little information currently on the companies financial situation but I was able to find a pdf that layed out the balance sheet and cash flow statements. This company is cheap. It sells at 0.77 of book value, around 4x free cash flow, and has potential growth in asia. It’s shares trade for around $3.50 and are highly illiquid. This seems to be a great long term buy and hold position. I’ve initiated a small stake.

Symbol: Tsryy.pk

http://www.treasurywineestates.com/

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