Vina Concha y Toro S.A. (ADR) (NYSE:VCO)

CAPS Rating: 5 out of 5

The Company is a producer and exporter of wines. It is a vertically integrated company that is involved at every stage of the production & marketing of wine. It manages its own vineyards, vinification & bottling plants & a distribution network for wines.

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Member Avatar AjOrellana (< 20) Submitted: 3/7/2011 2:19:06 PM : Outperform Start Price: $43.14 VCO Score: -64.37

This Chile's largest wine maker( I love chile & wine!). There are a number of reason why I believe this stock will outperform the S&P 500. First, it is undervalued relative to the industry. Second, recent actions by management will further open up the American market(eventually they will be globally competitive), and finally, demand from China and other emerging economies will benefit this awesome wine maker.

It is undervalued because:

Current P/E Ratio of 20.1 vs. 30.2 in the industry A Price/Sales Ratio of only 2.23 when the industry is at 3.34. In regard to the price relative to its book value, Price/Book Value is at 2.29 vs 4.56 in the industry.

The fact that it is under valued and they it can continue to grow if reinforced by some of its liquidity ratios and debt levels:

A current ratio of 1.9 and the industry's is 1.0 Quick ratio is 1.1 vs .8 in the industry. A leverage ratio of 1.6 vs 2.4 in the industry. A debt to equity ratio of .22 vs .74 in the industry.

All these numbers mean that VCO is undervalued, has a lot of cash at hand relative to its competitors, with a low levels of debt. This means that it has potential for growth.

This is show in their latest acquisition of Fetzer Vineyards. This move will allow them to control 5 american brands of wine. These brands generated US$156 million sales in 2010. This move will allow VCO to extend their presence in the global market.

The final reason, is a more "macro" reason why i think companies like VCO will ultimately benefit from other emerging markets. Have you heard of the "New Silk Road"? well, its refers to the trade between emerging markets, which links them to the enormous demand from China. So remember this: Billions will come out of poverty in our lifetimes, these people will begin to consume as their stand of living increase. These means that companies that are well positioned globally, will benefit from this demand! :)

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Member Avatar 2k1 (98.61) Submitted: 11/22/2008 12:40:30 PM : Outperform Start Price: $29.61 VCO Score: -121.73

One of the best and broadest wine makers around. Their high-end stuff (Melchor) is as good as any cabernet in the world but cheaper; mid-level CyT and Casillero are some of the best bargains on the shelf; and their low-end stuff (Xplorador) sells like hot cakes. Chilean cabernets, carmeneres, and merlots will soon achieve the price level of the rest of the world's pricey reds and VCO will reap the rewards.

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Member Avatar paladin65 (27.09) Submitted: 8/1/2008 10:22:19 PM : Outperform Start Price: $31.65 VCO Score: -44.55

3 to 5 star stock in one year.

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Member Avatar AJL203PSU (< 20) Submitted: 7/12/2008 10:30:23 PM : Outperform Start Price: $32.39 VCO Score: -48.19

I like the product

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Member Avatar apchempete (< 20) Submitted: 6/26/2008 11:01:10 AM : Outperform Start Price: $32.88 VCO Score: -44.68

The recent pullback makes for a good buying opportunity. Great Merlot producer for the price. Chile's economy remains strong. As the dollar rebounds and American consumers wish to drown their sorrows more cheaply, Choncha Y Toro ain't no bull..........be a pig and snort up this one.

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Member Avatar lokibeat (< 20) Submitted: 5/18/2008 1:46:53 PM : Outperform Start Price: $34.48 VCO Score: -35.93

A sin stock. International. Dividend a plus.

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Member Avatar lanapash (< 20) Submitted: 3/25/2008 9:26:26 PM : Outperform Start Price: $31.89 VCO Score: -35.66

You have to go with what you know best, right? Well this is a great wine and alcohol always does well, even more so in a recessionary period- drink it up!

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Member Avatar pandroid (< 20) Submitted: 3/18/2008 11:44:19 AM : Outperform Start Price: $32.62 VCO Score: -42.70

This is a pick of mine because it's got a great name. Vina Conchia y Toro... Let's dance! Let's party! Let's drink!
The recession is looming... got to love those alcohol stocks. Let's drink our troubles away!

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Member Avatar lareineivre (90.65) Submitted: 12/30/2007 2:48:24 AM : Outperform Start Price: $37.83 VCO Score: -41.88

Favorable risk / reward profile. Comparative analysis:
http://f1.grp.yahoofs.com/v1/8EF3R8IApDlbI1SUEwj9ACPoO-N506V3BymU7tTVdt21_4PxNLCn-oJ6KY_K8iQ5Z-yn652fM-b9S1MpHcVrFg/VOps/VOps%2007.11.30.xls

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Member Avatar gopirque (< 20) Submitted: 12/5/2007 10:17:46 AM : Outperform Start Price: $39.08 VCO Score: -44.75

Concho Y Toro...the Shell and The Bull, and BULL it is.
Picking this stock to shed some light for others, I pass this winery every day when I'm in Chile...it is located just outside of Puente Alto, a suburb of Santiago. The main road going through Puente Alto is even named after the place.
Some key things about Concho Y Toro is that the locals love it. Not because it is a cheap wine, but because it is very good...world-class. Though I have not seen it sold in the states, it does not surprise me to see that it is sold in Europe. People come from all over the world to tour the place.
I did notice that debt had been inching upwards. This may be something to keep an eye on, however they did just replant several of their vineyards this fall (spring down there) and that may contribute to it.
Concho Y Toro is clearly one of the leaders of wine in Chile, and with more exposure-the world. Sounds like a Toro...a Bull to me.

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Member Avatar Kico333 (23.87) Submitted: 7/18/2007 1:22:47 PM : Outperform Start Price: $43.21 VCO Score: -49.27

Good wine that is being seen more and more throughout Europe, and in some expensive restaraunts. I work in Liberia for the UN, and our PX is stocking several varities. Last time I was in Brussels, I saw both Conch and Diablo in markets and restaraunts.

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