Constellation Brands, Inc. (STZ)
The Company is an international producer and marketer of beverage alcohol with a portfolio of brands across the wine, spirits and imported beer categories.
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Outperform only because they have performed so poorly in the past. Hipe and expectations that this stock is defensive will drive it up. Otherwise - managed poorly. History of acquiring too much debt and restructuring. Destroying premium brands which were suppose to operate as if never acquired. Good feelings at headquarters and with employees left with Mr. Sands a few years back.
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This has been a good company, hurt by the economic condition of the country. Now that people have to stay home--I think they will drink.
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Beat the Market, alcohol and profitable.
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Too large debt, too many one time hits even management dont know what their true underlying profit is.
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Drinkers W H E R E???? 20 % of all wine sales is Zinfandel...
The economy is bad, have a drink, the economy is good, have a drink!!!
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this is a sleeper stock. low debt compared to deo. get ready to go up up up.
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This is a value company with cash. Cash is king in this economic environment. Like it here for a buy point and more so with a pop over 13.5/share.
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Too many VP's
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Mmm...alcohol...
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10/2/08, 10:00 AM Good earnings growth. Resistant to recession. Good pull-back.
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This company has usually acted contrary to the market so with the positive upswing I expect it to give up its recent gain over the next few days.
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Never underestimate the people's ability to buy booze in a recession.
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10 times next year's earnings and has a lot of "trade down" type brands in case the recession worsens.
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Economy Bad=Excessive Drinking to relieve stress. I thknk that there will be an upside to Constellation. People drink more during a recession. Just ask the Russians. Vodka anyone?
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Let's have a drink. With all the market volitility, people will continue to drink. Priced well right now. I see it doing well this company year.
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Wine consumption is on the rise, many grocery stores are investing in bigger wine sections. More and more people are getting into wine, it isn't so snobby anymore. STZ has a great portfolio of wineries and it takes time for them to get things back on track after all of their acquisitions last year. Over the course of this year this stock should rise even if the earnings report on 4/3 isn't a great as everyone would want. Price is right.
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Just building a sin stock portfolio
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economic slow down = people drinking more
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Constellation is the largest wine company in the world; a leading producer and exporter of wine from Australia, New Zealand and Canada; and both a major producer and independent drinks wholesaler in the United Kingdom. With more than 250 beverage alcohol brands marketed in nearly 150 countries, Constellation offers consumers their beverage of choice for any occasion. Most of their fare is wines, but they also have some limited spirits, including Black Velvet, and beers, including Corona Extra, Corona Light, Modelo Especial, Pacifico, Negra Modelo, and St. Pauli Girl from Germany. Among their more well-known wines are Mondavi, Ravenswood and 3 blind moose. Constellation is a small-cap stock with both growth and value characteristics, whose earnings have increased in 10 of the last 12 years. As of mid-March 2008, STZ has an intrinsic value per share of $25.48, assuming a projected earnings growth rate over the next 10 years is 12.00%. STZ currently sells at $18.70 per share, which is a 26% discount to its intrinsic value. For $134 million, they just sold a small winery and their historic, but time-worn Almaden and Inglenook wine brands, which have a long history, but now sell for about $3 a bottle, and have lost their appeal with today’s wine consumers. On the down side, STZ doesn’t pay dividends. Institutional investors own 90.0% of STZ’s shares, but insiders own less than 1%, which is not ideal. Like another CAPS contributor, though, I believe that the looming recession and political season equate to increased alcohol consumption, which is why I selected them to OUTPERFORM.

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