{"id":53262,"date":"2014-06-25T02:58:24","date_gmt":"2014-06-25T06:58:24","guid":{"rendered":"http:\/\/countingpips.com\/?p=53262"},"modified":"2014-06-25T02:58:24","modified_gmt":"2014-06-25T06:58:24","slug":"why-the-treasury-wines-share-price-closed-higher-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/why-the-treasury-wines-share-price-closed-higher-today\/","title":{"rendered":"Why the Treasury Wines Share Price Closed Higher Today"},"content":{"rendered":"
June 25, 2014<\/div>
\r\n<\/div><\/div>

By MoneyMorning.com.au<\/u><\/a><\/p>\n

What happened to the Treasury Wines Share Price?<\/h2>\n

\nTreasury Wine Estates Limited [ASX: TWE]<\/strong> closed 5.59% higher on Wednesday. TWE is a global wine company and the largest listed wine play in the world. Its portfolio includes well known wine brands such as Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate.\n<\/p>\n

Why did this happened to the Treasury Wines Share Price?<\/h2>\n

\nThe company is in the process of streamlining their product releases. Now the Penfolds \u2018Bin Series\u2019 and the Icon & Luxury Collections will be released together in October each year, rather than March and May as has been done in previous years.<\/p>\n

This should reduce costs in the long term for the company. Additionally it is a strategic marketing play to position the products for the next six month festive period (Thanksgiving, Christmas, Chinese New Year and Easter).\n<\/p>\n

What now for Treasury Wine?<\/h2>\n

\nThe company downgraded its earnings forecast in January this year to $190\u2013210 million. This was a $40 million drop from the anticipated $230\u2013250 million expected at the start of the 2014 financial year. This announcement caused the share price to decline 19.6% over five days, with a year to date low of $3.19<\/p>\n

Four months later the TWE board rejected a $3.05 billion takeover bid from private equity firm Kohlberg Kravis Roberts (KKR) of $4.70 per share. Since then, the stock has rallied past $5 per share.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Some industry insiders have suggested the KKR bid was too cheap, and appropriate value is $5 per share.<\/p>\n

TWE is claiming that the 2015 financial year will be the \u2018reset year\u2019. Streamlining costs and an aggressive marketing campaign (estimated to be around $17 million) are plans to increase sales of products.<\/p>\n

Falling earnings, either speculated or confirmed, will see the share price fall again. However, if the company does achieve its earnings estimate, it could lift the stock beyond $5 per share. Treasury Wines pays a dividend of 13 cents.\n<\/p>\n

Shae Smith+<\/a>
\n Editor, Money Weekend<\/em><\/strong><\/p>\n

Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What happened to the Treasury Wines Share Price? Treasury Wine Estates Limited [ASX: TWE] closed 5.59% higher on Wednesday. TWE is a global wine company and the largest listed wine play in the world. Its portfolio includes well known wine brands such as Penfolds, Beringer, Lindemans, Wolf Blass and Rosemount Estate. Why did […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53262","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53262"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53262\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}