Digital Wine Ventures Shares, ASX:DW8 share price

Amongst all the chaos on the ASX today, crowd favorite Digital Wine Ventures (ASX DW8), has fallen another 14.29%. This comes despite a series of positive announcements by DW8.

Today Digital Wine Ventures shares closed at $0.09. Down a massive 57% from their all time highs of 21 cents just last month.

We saw today as an opportunity and jumped in at $0.088 cents doubling our holding in ASX:DW8. Last month we wrote an article on why we believe Digital Wine Ventures shares are a clear buy for us.

Fundamentally, nothing has changed within the company. To us DW8 appears to be growing strongly in terms of suppliers and revenue.

ASX:DW8 Share Price

Digital Wine Ventures Share Price (ASX:DW8), Share price, ASX
Digital Wine Ventures Share Price (ASX:DW8)

Yesterdays DW8 Company Update

Digital Wine Ventures leads with five highlights in its Company update, all of which show the massive growth the company is achieving from the same time last year;

  • WINEDEPOT ships over 23,000 cases in April, up +580% on the same month last year
  • WINEDEPOT processes over 9,500 orders, up +350% on the same month last year
  • WINEDEPOT signs up another 19 suppliers
  • WINEDEPOT soft launches direct-to-trade marketplace
  • WINEDEPOT secures liquor licence required to launch INSIDER TRADING wine club

However, when we look at the growth we see orders are slightly down from their March highs. Digital Wine Ventures attributes this to “the extended vintage preoccupying many winemakers” (whatever that means).

Digital Wine Ventures Share Price (ASX:DW8), Chart, Order Volumes
Digital Wine Ventures ASX:DW8 Case and Order Volumes

This chart shows sales are down 9.1%. In the month of April 23,006 cases were shipped, representing an impressive jump of 580% compared to the previous corresponding period (pcp). However not quite the record 25,311 cases shipped in March. This represents a month-on-month (MoM) drop of 10%. From March to April, orders processed also fell 22.5% to around 9,500 orders.

From the DW8 case and order volumes graph we can see fluctuations. This is obviously to be expected for sales from any company. Especially early stages. The important thing is the fundamentals remain solid and the trend shows massive growth.

Digital Wine Ventures Shares: Further Growth

In yesterdays announcement DW8 revealed their application for an online liquor license has been approved. This will allow Digital Wine Ventures to sell direct to the public via their newest venture: “INSIDER TRADING wine club”

At this stage they will be selling exclusively to DW8 shareholders, Wine Depot staff and employees of suppliers at discount prices.

‘Insiders’ will also have access to a range of benefits including invitations to private tastings,
dinners, master classes and other events in due course.

Let me say that again: “selling exclusively to DW8 shareholders, access to a range of benefits”

Those looking to join the “Insider Trading” program can now register their interest on the DW8 Website. I know I will be! For us that really is one simple reason to buy digital wine ventures shares

The Verdict

Fundamentals have not changed. DW8 is in an excellent financial position. It has proven growth, with many more opportunities arising. After the recent sell-off at a price of $0.09, We are bullish on Digital Wine Ventures shares. Check out our other article on ASX:DW8 here.

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