Crimson Wine Group Update 2
Crimson Wine Group’s financials finally appeared on Google Finance. Now when a lazy Leucadia investor who checks their holdings and sees surprise shares of Crimson Wine Group in their account wants to check CWGL to see whether to keep the shares, they’ll see a company at a P/E of 1,044 that is selling for almost 9x book value. That should effectively kill any incentive to hold shares, and is great for a patient investor waiting to steal shares at cheap prices.
In their next quarterly release, we should see “sudden” and “surprise” profitability, no debt, much much higher equity, and hopefully higher margins(although that may be a bit too much to ask for). I will be waiting for shares to hit the 8.50 or below marker before I start buying I think. I believe the shares are worth at least $13 each, so that gives me a solid 35% margin of safety with catalysts to realize value.