$68.58 -0.62 (-0.90%)
12/3/2009 4:04 PM

Diageo plc (ADR) (DEO)

CAPS Rating: 5 out of 5

The Company is engaged in the premium drinks business with a collection of international brands.

Recs

7
Member Avatar tenmiles (99.99) Submitted: 1/27/2009 1:30:51 PM : Outperform Start Price: $50.65 DEO Score: +2.48

I like Diageo as a defensive play and likely market beater on a total return basis over the next few years. Valutation metrics are in line with its peer group, while the balance sheet is strong enough to support very attractive dividend yield north of 6%. Leadership positions within a wide variety of spirits; also has some "low end" lines, which should continue to do well if drinkers trade down. I hadn't realized until recently that they sell more Guinness in Africa than in Ireland. reports.

Worst case scenario - their 10 year old Johnnie Walter inventory becomes 12 year old and they sell it for more profit - seems like a good business model for these recessionary times

.

Report this Post 3 Comments
Member Avatar CharlieBombay (29.65) Submitted: 1/27/2009 2:45:10 PM
Recs: 1 Rec This

Sounds like a good opportunity: to buy the stock, and to get in on the 12 year JW two years ahead of the curve. I like your thinking.

Report this Post
Member Avatar trenton1ryan (< 20) Submitted: 2/1/2009 3:42:29 AM
Recs: 0 Rec This

Report this Post
Member Avatar trenton1ryan (< 20) Submitted: 2/1/2009 3:43:07 AM
Recs: 0 Rec This

Sounds like a good opportunity: to buy the stock, and to get in on the 12 year JW two years ahead of the curve. I like your thinking>Amen, my brothers.

Report this Post

Featured Broker Partners