Wine business TWE keeps threatening to break out only to fail, and we cannot ignore the fact that it has traded sideways for the last 3-4 years, posing the following question: Could we deploy our funds better elsewhere? We will wait to see how TWE digests the US election outcome and subsequent interpretation of likely tariffs, or not, towards China. Also, with the Chinese now preferring to spend their money on experiences instead of luxury goods, wines might be on the right side of the fence, although bottles of Grange on restaurant tables might not be as prevalent as 5-10 years ago.
- We like TWE, but we will reassess after the Presidential election and this week’s meeting of China’s top legislative body.
MM is long and bullish toward TWE
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