|Written by GSCR Staff|
|Friday, 20 June 2014 07:53|
Time to buy sin stocks! This was the theme in the Guide earlier this week and picking the right one can allow you to get some guilty pleasure in terms of profits.
Truett-Hurst, Inc. (NASDAQ – THST - $5.19) is an up and comer in the in the fashionable and growing wine industry. The Company offers wine products that include including Pinot Noir, Chardonnay, Sauvignon Blanc, Merlot, Cabernet Sauvignon, and Zinfandel that market and sell under the Healdsburg Ranches, and Bradford Mountain brands directly through its tasting rooms and wine clubs, as well as distributors. Additionally, Truett-Hurst has introduced the PaperBoy brand of recyclable win bottles, for the environmentally conscientious consumer, a great differentiator.
THST is attractive from a technical perspective now trading above the 20 and 50 day Simple Moving Average. The sales growth picture is also very intoxicating as consensus analyst’ estimates project a 40% CAGR project through FY2015. Finally, the Company has some great deal flow over the past few months having entered into distribution agreements with Trialto Wine Group, Ltd a distributor out of Canada and a wine supply agreement with Houdini Inc, a catalog and online storefront. Houdini’s Wine Country Gift Baskets has sold more than 50 million gift baskets at warehouse clubs, mass merchandisers, liquor retailers, specialty stores, catalog companies and internet sites in the United States and in over 30 countries.
THST is a nice sin to add to your core portfolio. Look for a jump to $7.00 by the harvest season, late summer or early fall.
Have a great weekend!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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