Naked Wine Bond

magpiecottage

Freecall wrote: »

The wine I drink is always a liquid!

Not tried it as an ice lolly then?

You haven't lived!

dcsg2

Masomnia wrote: »

Had another look at the prospectus and it's kind of obvious why they're selling these. They have £12million in debt falling due this year (but only £142,000 on top of that) and £8million in assets. So lots to refinance, and the company owes a lot more than it has in assets...

It really depends on whether they can remain profitable.

So I'd say on the risky side of things! I love the idea of getting the 10% into my angel account and using it to buy wines at a discount. But I think the risks are just a bit too great for me.

Masomnia - does that take into account the $10m investment a German wine house has just put into the business? That feels like a significant derisker to me, although i accept it will probably all get splurged on international expansion.

Reaper

A MoneyWeek journalist is more positive about the bond, for a small sum at least. Article here:
http://moneyweek.com/right-side-your-way-into-the-fine-wines-business/

Masomnia

dcsg2 wrote: »

Masomnia - does that take into account the $10m investment a German wine house has just put into the business? That feels like a significant derisker to me, although i accept it will probably all get splurged on international expansion.

Hmm, no I'm just going off what's in the prospectus. Could well derisk it significantly, yes.

I'm still tempted by the way!

janiebquick

Interesting! I have lots of sensible investments with only one silly one - Thorntons Chocolate - so am open to investing a small sum in something a bit different. and yes, I do know a bit about wine and the wine market.

Still thinking about it though.

tofu

The person who wrote the moneyweek article does not seem to have a clue about the wine trade. Paying growers upfront for next year's vintage wasn't some revolution introduced by naked wine - it's called buying "en primeur" and has been practised for decades. Also, it has nothing to do with the "budget end of the market" - the most expensive Bordeaux can be bought en primeur. I'm not sure I would take business advice from that source...