The wine story

Champagne Indage is one of those boring stories.
Five years of increasing sales, continous profitability, decent Return on capital employed, stock selling at PE of about 5.

More importantly, its net current working capital is more than its market cap by about 25%!!

Here I think I need to a word or two about this concept of intrinsic value. The concept of intrinsic value is more of an indicator.

For e.g Someone enters his DOB into a system and the system returns that the DOB is earlier than 1990 - which means the person is a major. Now it is secondary to know if the person is 18 years and 1 day old or 99 years old. But for sure the person is 18 years old. The same anology applies for 'selling below intrinsic value' as well.

If we find a stock obeying four or five parameters of intrinsic value and if its management do not appear to be extremely dishonest or fraudulent, then the probability of not losing anything is much more on that stock, which is the core idea of logical investing.