Stonegate Capital Partners updates its coverage on Gaucho Group Holdings, Inc. (Nasdaq: VINO)


DALLAS, TX/ACCESSWIRE/December 8, 2021/ Gaucho Group Holdings, Inc. (NASDAQ:VINO): The full report can be accessed by clicking on the following link: Q321.pdf


Gaucho Group Holdings, through its subsidiaries, invests in, develops and operates real estate in Argentina. The company also owns and operates Algodon Mansion, a luxury boutique hotel in Buenos Aires; and Algodon Wine Estates, a winery and golf resort with tennis courts, restaurants and hotel amenities in Mendoza, as well as subdivided properties for residential developments. It also distributes and sells high-end luxury fashion products and accessories through an e-commerce platform.


  • Building a luxury brand – Gaucho seeks to become a world-class supplier of luxury and e-commerce brands, including direct-to-consumer fine wines, leather accessories and fashion, home and living goods and business assets experiential welcome. The Company believes that all of its segments/brands are closely linked to create a complete luxury experience and should help it achieve its goal of becoming the LVMH of South America.

  • Leverage the growth of e-commerce – The pandemic acted as a catalyst for e-commerce as consumers shopped online to avoid crowds and COVID-19. According to Digital Commerce 360, US consumers spent $861.1 billion online with US merchants, and US e-commerce grew 44% in 2020. The company has a fully optimized e-commerce platform that is expected to benefit from increased e-commerce demand for its luxury goods. and services.

  • Unique luxury wine real estate project – One of Gaucho’s luxury properties is Algodon Wine Estates, where someone can buy land on the property. These lots are positioned around the golf course and offer stunning views of the vineyards and the Sierra Pintada mountain range. Gaucho says these lots are often a fraction of the cost of comparable properties in Napa or Tuscany and are one of the last opportunities for consumers to purchase affordable real estate in a premier global wine hub. The company currently has 350 lots available for sale with an expansion plan to add another 500 lots. Its objective is to sell 20 lots/quarter at an average price of 200,000 US$.

  • Devaluation of the peso– Although there are multiple negative aspects associated with the devaluation of a currency, Gaucho believes that the devaluation of the Argentine peso offers him an opportunity. Since Gaucho produces wines and other goods in Argentina, the Company pays for manufacturing and labor in the devalued currency and can then sell those wines and goods at a favorable exchange rate in USD to US consumers. and/or other global consumers. The devaluation should also have a favorable impact on tourism, to the benefit of Gaucho’s hotel assets.

  • Scalable model – According to Research and, the global luxury goods market was $349 billion in 2020 and is expected to reach $403 billion by 2027, an increase of 15.5%. The report also notes forecasts that the global spirits and wine e-commerce market is expected to nearly double in 2021, with the US wine market estimated at $88 billion in 2020. Gaucho’s brands are all built and ready to produce and produce. provide services. As such, management believes it can easily increase production of wines, homewares and leather goods to meet demand. In addition, he believes he can see an appreciation of real estate and interest income on the sale of financed lots.

  • Evaluation – We use the potential sales of real estate lots to drive our valuation range. Based on various assumptions, we arrived at a valuation range of $5.50 to $7.75 with a midpoint of $6.75. Please see pages 7 and 8 for details.

About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based business advisory firm dedicated to serving the specialized needs of small cap public companies. Since our inception, our mission has been to find innovative and undervalued public companies for our network of leading institutional investors seeking high quality investment opportunities.

Stonegate Capital Partners
(214) 987-4121

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