Welcome to Wine and Whiskey Insider for May 20th, 2022 – FREE Edition.
We give you the scoop on undervalued, mispriced and hidden gems in Fractional Investing.
Let’s go!
Wine and Whiskey in 2022
Wine and whiskey continue their nonsensical behavior on fractional platform Rally, dipping into negative territory again.
Assets there now have an average 45% upside relative to the valuations on both Wine Searcher and Liv-Ex.
Just compare the Liv-Ex 1000 (below). There are some real opportunities to buy low right now.
Last week
Wine was down on fractional secondary markets, with an average of 3.5% on Rally.
This week
Offerings on fractional marketplaces
The Joy Fantastic Vint En Primeur
- Market Cap: $24k
- Inferred Value: $26k
- Drop Details: 5/20/2022 on Vint
- Our view: [INSIDERS ONLY]
En Primeur means you’re buying wine futures, or buying wines before they are bottled and released onto the market. This is the 2021 vintage, which is currently still aging and won’t be ready for release until autumn 2023. The Joy Fantastic wants cash now, though, so they’re willing to sell 50 cases of the good stuff to Vint at a 20% discount.
Vint then plans to sell on the 50 cases at a profit.
In this case, you’re paying $30 per share for something Vint is reasonably confident they can shift for $37.50 per share in sixteen months. Or, in per-bottle-terms, Vint is buying 600 bottles for $40 each, and they’ll sell them on for $50 each when they’re ready.
Buying En Primeur can get more complex with higher-end wines with two additional ways you can make more (or less) money:
- The wine can mature in the barrel into something better (or worse) than expected
- The broader market for that type of wine (in this case, California Syrah) could go up or down
I don’t think those are really factors here, though, because the retail price of this product has been stable for a few years. But something to consider at the higher end (you can watch two very stuffy old white men explain it more if you’d like).
Offerings to check out
Vinovest – Judgment of Paris collection
We’re not fully into Vinovest’s offerings yet, but it’s worth a look if you’re new to the platform. They’re releasing a new collection nearly every week, as far as I can tell, and they’ve got a great one available now.
The collection pits six Bordeaux against six reds from Napa Valley, and there’s something for everyone. The pick of the litter has to be the bottle of 2019 Screaming Eagle Cabernet, which is on offer for $3,920. The vintage is actually off around 10% over the last year, so it could be a good entry point.
That’s all for this week.
Got a friend who likes wine? Please forward them this post. We’d appreciate it.
Make sure you sign up to our Discord, where issue previews and in-depth valuations get kicked around.
Cheers,
Wyatt
