Distil PLC AIM

[Guest Michaeltuk]

Hi

 

Wondering peoples opinions on this AIM company, made some good profit from them over the past 15 months but strange flow from them. Great results in sales but extra marketing costs, huge brand in the portfolio worth more than the market capital of Distil.

 

Wondering if I should close up or wait it out.

[rimmy2000]

Michael,

 

DIS is a very small co (circa £12m market cap) so I doubt there'll be much coverage on here.

I would say go and check your source that the 'huge brand in the portfolio worth more than the market cap of Distil'

 

Last night I looked at the annual report and if you are referring to Blavod, this is recognized in the balance sheet as an asset worth about -from memory now - £1.3m, about 10% of market cap, not more than.

 

 

Keen for you to post your arguments for the company and I can help look as some aspects of it, I did get a bottle of Red Leg spiced rum fro the company earlier this year - it is very good rum(!) but a crowded market place..

 

Keen to hear more from you..

 

 

 

[rimmy2000]

here you go, 2016 Annual Report, note 11.

 

[rimmy2000]

personally, i'd go the other end of the spectrum and buy FEVR.

[Guest Michaeltuk]

Hi Rimmy,

 

Thanks for the reply, I was talking about Redleg as the biggest brand in their portfolio which is now available in all major supermarkets in the UK. The company itself seems a bit weird over the last few months I see the growth of assets but its in line with the growth of the company with increased investment in marketing there is a bigger spend but all in all is very positive however share price keeps dipping. We seem to have been waiting almost 5 months for their announcement of the US supplier which again seems a little odd

 

I agree its for sure a crowded market place (I know I work in it!) but there is very little in terms of medium priced like Redleg which gives it a little edge.

[rimmy2000]

Redleg is good, I agree. But I still doubt it is worth more than the market cap (happy to be shown otherwise)

Good luck if you do take a position here, btw. It may come good for you and I hope it does. But for me, I would reconsider if price dropped to around 1.5p

 

Personally, I'd still go with FEVR. The spirits of the day will shift around but FEVR has firmly rooted itself as the mixer of choice and knocked Schweppes off the top spot. I don't think the competition stand a chance now and expect a takeover will be the end game here (Diageo, Britvic, AG Barr.. who knows.. (I hold some FEVR, so perhaps a bit biased   )