Constellation Brands (STZ)

Re: Constellation Brands (STZ)

Postby winston » Wed Nov 15, 2017 9:55 pm

not vested

AN EXPLOSIVE WINNER FROM THE BEVERAGE BUSINESS

Today's chart shows our "selling the basics" strategy at work...

Regular readers know you don't have to take big risks to generate huge returns. For years, we've shown you the power of investing in companies that sell boring, everyday items like cigarettes, soda, and toothpaste.

It's one of the most powerful ways to build steady, long-term wealth in the stock market.

One of the best examples is Constellation Brands (STZ). The $43 billion company is the No. 1 premium wine producer in the U.S. It's also the country's No. 1 beer importer.

Constellation's portfolio includes more than 80 different brands, such as Robert Mondavi wine, SVEDKA vodka, and Corona beer. In June 2011, our colleague Dan Ferris told subscribers to buy shares in his excellent Extreme Value advisory.

As you can see in the chart below, his timing was spot on. Dan's readers locked in huge 631% gains last November. Shares are still climbing to new highs today.

And Dan's recommendation earned the No. 3 position in the Stansberry Research Hall of Fame. Congratulations to Dan on another great call...

Source:; Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Fri Nov 24, 2017 12:00 pm

Thanksgiving Stocks to Buy: Constellation Brands (STZ)

by Jirka Matousek

All it took was a $245 million investment in Canopy Growth Corp (OTCMKTS:TWMJF), one of Canada’s largest producers of medical marijuana with a market cap of $2.7 billion, to send marijuana stocks into the stratosphere. Constellation Brands, Inc. (NYSE:STZ) was buying 9.9% of Canopy Growth’s stock.

More importantly, Constellation is going to work with Canopy Growth to develop cannabis-based drinks for its customers who already purchase wine, beer and spirits made by the company.

“Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” said Constellation chief executive Rob Sands, in a statement discussing its investment.

In states like Colorado where recreational use is legal, cannabis-based drinks are booming. By working with Canopy Growth, Constellation goes from a triple threat (beer, wine, spirits) to a quadruple threat.

You won’t be able to buy Constellation Brands’ cannabis drinks this Thanksgiving holiday but come this time next year, you can bet shareholders will be very happy about its little $245 million investment.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Tue Jun 26, 2018 1:28 pm

not vested

Marijuana Stocks to Consider: Constellation Brands

You may know Constellation Brands (NYSE:STZ) as a leading beer and wine company. And that’s true. But Constellation has big plans for the marijuana space in the future.

The opening move for that came with Constellation buying a 9.9% stake in Canopy Growth (NYSE:CGC) this past October.

This was an obvious and attractive way to get exposure to the marijuana equity space at an attractive price. Canopy stock was at around $10 back then and is now at around $34.

And there is a bigger strategic plan at work as well. Constellation wants to sell marijuana-infused products itself. The company has said that it’s too early to tell whether marijuana legislation will help, hurt or be neutral for alcohol companies. As a result, it is hedging its bets by selling pot-infused beverages of its own. As the company put it earlier this year:

“Our goal with this organization [Canopy] is to work collaboratively to both understand the cannabis business but also develop unique cannabis-based beverages that will be available around the world as legalities prove those to be an option.”

A Canopy spokesperson suggested that marijuana-infused products, such as beverages, won’t be legal in Canada until next year. However, she went on to add: “That said, we are already preparing for the opportunity to brand and market these products, once federal regulations permit.”

In the meantime, Constellation has its leading portfolio of beer and wines, including brands such as Corona. With STZ stock at 21x forward earnings, this is a reasonable way to get a shot at the marijuana market without taking massive downside risk.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Sat Aug 18, 2018 8:19 am

not vested

Stocks to Buy at the Bottom: Constellation Brands, Inc. (STZ)

Constellation (NYSE:STZ) could be poised for the next chapter in its existence. After struggling with slowing sales growth in the beverage market, investors wonder if marijuana will help it become one of the better stocks to buy at the bottom.

Constellation recently announced an intention to invest an additional $3.88 billion in Canadian marijuana company Canopy Growth (NYSE:CGC). STZ stock still denies it has become a “marijuana stock.” However, Constellation now refers to cannabis as the “natural fourth leg” after beer, wine, and spirits.

This also follows up on the $191 million investment STZ made last year in CGC. Both stakes combine to give Constellation a 38% stake in the cannabis company.

Whatever STZ has become, it has bought a company that saw 63% revenue growth last year. This could increase profit growth, which analysts predict will increase by an average of 12.5% per year over the next five years.

STZ stock trades at a forward P/E of about 21.2. While both the profit growth and P/E run close to S&P 500 averages, marijuana changes the dynamic.

As more states and countries opt for full cannabis legalization, profits for STZ should increase further as CGC stock becomes profitable starting in 2020.

Among stocks to buy at the bottom, Constellation will experience the catalyst it needs to return STZ stock to a growth path.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Wed Sep 19, 2018 3:40 pm

not vested

Constellation Brands, Inc. (STZ)

In a challenged economy, small luxuries such as a refreshing adult beverage carry people through in harder times.

As such, Constellation (NYSE:STZ) owns many of the more popular brands sold in the U.S. It also derives more than 90% of its revenue from the U.S., so a trade war with China hurts the company little in that regard.

Its forward price-earnings (P/E) of 22.2 will probably neither attract nor put off investors. One might say the same thing about the 1.4% dividend yield. However, dividends have more than doubled since 2015.

In the last year alone, the company hiked the annual dividend from $1.96 to $2.96 per share. Maintaining that pattern of significant dividend increases should draw investors over time.

Also, its growth deserves attention. Profits have grown by an average of 27% over the last five years. Wall Street expects that net income will rise by an average of 12% per year over the same period.

One of the growth drivers will likely come from marijuana. As legalization looms in Canada and grows increasingly likely in the U.S., Constellation’s investment in Canada-based Canopy Growth (NYSE:CGC) appears more visionary. Our deteriorating trade relationship with Canada could reduce the potential benefits of this relationship.

With or without a trade war, this gives the company a leg up in bringing cannabis-infused products to the market. With its increasing profit growth and its lead on marijuana-infused products, I see STZ stock performing well whether or not this trade war continues.

Source: investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Wed Sep 19, 2018 3:40 pm

not vested

Constellation Brands, Inc. (STZ)

In a challenged economy, small luxuries such as a refreshing adult beverage carry people through in harder times.

As such, Constellation (NYSE:STZ) owns many of the more popular brands sold in the U.S. It also derives more than 90% of its revenue from the U.S., so a trade war with China hurts the company little in that regard.

Its forward price-earnings (P/E) of 22.2 will probably neither attract nor put off investors. One might say the same thing about the 1.4% dividend yield. However, dividends have more than doubled since 2015.

In the last year alone, the company hiked the annual dividend from $1.96 to $2.96 per share. Maintaining that pattern of significant dividend increases should draw investors over time.

Also, its growth deserves attention. Profits have grown by an average of 27% over the last five years. Wall Street expects that net income will rise by an average of 12% per year over the same period.

One of the growth drivers will likely come from marijuana. As legalization looms in Canada and grows increasingly likely in the U.S., Constellation’s investment in Canada-based Canopy Growth (NYSE:CGC) appears more visionary. Our deteriorating trade relationship with Canada could reduce the potential benefits of this relationship.

With or without a trade war, this gives the company a leg up in bringing cannabis-infused products to the market. With its increasing profit growth and its lead on marijuana-infused products, I see STZ stock performing well whether or not this trade war continues.

Source: investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Thu Jan 10, 2019 7:20 am

not vested

Constellation Brands Tops Q3 Earnings, View Cut Hurts Stock

Management cut its outlook for fiscal 2019, owing to higher interest expenses related to investment in Canopy Growth (NYSE:CGC) and expected softness in the wine and spirits business.

Reported earnings were $1.56 per share, down 36.3% year over year.

Net sales improved 9.5% to $1,972.6 million.

At the company’s beer business, sales improved 16% to $1,209.8 million.

The wine and spirits segment’s sales increased 0.4% to $762.8 million.

Gross profit margin contracted 40 basis points (bps) to 50.3%.

Constellation Brands ended the fiscal third quarter with cash and cash equivalents of $130.6 million. As of Nov 30, 2018, it had $11,772.5 million in long-term debt (excluding current maturities) along with total shareholders’ equity of $11,520 million.

In the first nine months of fiscal 2019, Constellation Brands generated $2 billion of operating cash flow and $1.4 billion of free cash flow.

Constellation Brands completed its $4 billion investment in Canopy Growth in November 2018, which was financed with debt.


Source: Zacks Investment Research

https://www.investing.com/analysis/cons ... -200374176
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Thu Jan 10, 2019 10:43 pm

not vested

Constellation Rebounds as Investors Eye Potential in Canopy Growth Cannabis Play

by Martin Baccardax

The Corona beer maker said earnings for its 2019 fiscal year, which ends in March, to come in between $9.20 and $9.30 per share, down from a prior forecast of $9.60 to $9.75 and shy of the Street consensus of $9.43 per share.

The reduction was linked to a pre-tax impact of around 25 cents a share from its debt-backed Canopy Growth investment in 2017, and a $164 million decrease in the fair value of the stake over the three months ending in November.


Source: The Street

https://www.thestreet.com/investing/ear ... y-14830190
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Fri May 31, 2019 10:31 pm

not vested

Constellation Brands’ stock drops 8% as new tariffs could raise Corona, Modelo import costs

by Fred Imbert

Morgan Stanley estimates about 75% of its beer portfolio is “entirely imported” from Mexico. The bank also notes that a 5% tariffs on Mexican goods would shave off nearly 4% from the company’s overall bottom line.

A 25% levy, meanwhile, would slash Constellation Brands’ profit by 19%.


Source: CNBC

https://www.cnbc.com/2019/05/31/constel ... costs.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

Re: Constellation Brands (STZ)

Postby winston » Thu Jun 06, 2019 9:04 am

Constellation Brands looks to bounce back

One company that is finding itself targeted by the Trump administration's latest proposal to impose tariffs on Mexico is Constellation Brands, the importer and distributor of Grupo Modelo beers, including Corona, from Mexico.

Constellation operates as a diversified alcohol company with ownership of wine and spirits brands, but its principal business is Mexican beer.

The company also has a multibillion-dollar stake in Canopy Growth (NYSE:CGC), a leading Canadian cannabis company, making Constellation one to watch in June for multiple reasons.

The beer maker's stock has already moved back and forth on Mexican tariff concerns, down 12.5% over the last month, and whether or not tariffs are actually put into effect will likely impact the stock.

Additionally, both Constellation and Canopy report earnings later in the month. Canopy's report will come out June 20, while Constellation's is due out on June 28.

Constellation has been busy reorienting its brand portfolio to premium labels, and investors will look for signs that the company's decision in April to sell about 30 lower-end wine brands to E&J Gallo for $1.7 billion is paying off as Constellation is always on the lookout for new acquisitions.

Constellation did not issue guidance for the first quarter, but analysts expect earnings per share to fall from $2.20 to $2.11 and for revenue to increase 1.3% to $2.07 billion.

Similarly, Canopy's earnings report could also move the stock, as Constellation owns about 38% of the Canadian pot grower and Canopy has shown off phenomenal growth rates since recreational pot was legalized in Canada last October.

Revenue jumped 282% in its most recent quarter, and the company has its eye on the U.S. market opening up with its recent deal to acquire Acreage Holdings.

With two sets of earnings reports and tariff talks about to begin, June is shaping up to be an exciting month for Constellation Brands.

Source: Motley Fool
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118527
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to A to D

Who is online

Users browsing this forum: No registered users and 9 guests