In this section we place one stock under the microscope and give it the unconventional assessment. Treasury Wine Estate (TWE $17.39) – Is one of the world’s largest wine companies. Through world-class winemaking and brand marketing, the business is focused on meeting evolving consumer interests across the globe, and on delivering sustainable growth. It has a portfolio of highly recognised brands to tap into strengthening global demand for premium and luxury wine. Its growth is particularly evident in Asia. Some of the company’s well-known brands are – Penfolds, Wolf Blass, Lindeman’s and Beringer. TWE has access more than 14,000 planted hectares of vineyards in some of the world’s most sought after winemaking regions, employs more than 3,500 people across the globe and sells in more than 70 countries all over the world. Bulls Treasury’s strategy is supported by a geographically diversified grape supply from owned vineyards and contracts with external growers. This mitigates weather risk and enables it to respond to movements in market tastes. Low debt in an industry that suffers from severe earnings shocks. It has 16.55% gearing. Balance sheet is in good financial health. Its balanced portfolio helps it access distributors in all major markets. Is starting to tap emerging markets in particular the Chinese market. Penfolds is starting to make wines in the US Napa Valley region. A positive exposure. Bears Is exposed to uncontrollable industry conditions such as unfavourable weather, fickle and cyclical consumer demand, poor cash flow generation and long production lead times. The risk of aged wine inventory suffering a fall in value before its sale. The write-downs of US inventories in 2013 are an example of problems faced by wine companies. A few years ago a grape glut and competition from new world producers cause downward pressure on local wine producers. Do we invest in it?     Yes we do. TWE is held in the “Value Bucket” via the Bennelong Ex-20 Australia Equity Share fund. The high-conviction Bennelong ex-20 Australian is a top pick for those investors looking for growth. The only constraint, as its name suggests, is to invest outside the top 20 stocks which gives it a slant toward mid- and larger-cap businesses compared with peers.  Broker Comments Morgan Stanley (OVERWEIGHT $20.00) – The broker is bullish on TWE. It expects a tightening in grape…

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