Constellation Brands, Inc. (NYSE:STZ)

Balance sheet isn't great, but good Cash Flow numbers and a great stable of brands. Also, they manage to squeeze out 15% net margins on so-so Gross margins. Wine market is growing as opposed to beer.

Constellation Brands took a 20% nosedive recently due to a U.S. goverment lawsuit to block Anheuser-Busch InBev's aquisition of Corona beer maker Grupo Modelo. If the deal goes through Modelo would sell it's half of Crown Imports to Constellation. If not, this poses a problem for Constellations designs to get a greater foothold in the beer market. I ultimately think the deal will go through and the stock will rebound

Not growing fast enough to justify valuation.

good value here

As debt is reduced, interest expense will go down and free cash flow will rise. At the same time, less leverage means more value for equity holders. The company has also approved a $500 million buyback to be implemented over the next several years.

In three years, I expect debt to drop about 50% and FCF to rise to about $700 million. 10x EV/FCF would imply an equity value of about $5.8 billion over 200 million shares...

$29 3-yr price target. I doubt the S&P will hit 1800 by then.

These are alcoholic beverages that people enjoy when times get tough. Lets be honest with ourselves. The market is going to slip down towards new lows because the recovery will never truly occur until small businesses are allowed to borrow easily and their taxes shrink. In this time period, people will buy the alcohol that they are familiar with. Even though a man may be down on his luck, it does not change his taste in liquors. These products will sell particularly well.

Liquor and beer!
True Recession busters!

consumer will come back, and consumption of beverage will go back as well, especially alcohol

The product it sells is immensely popular. Records always show that products like these are just about the last economy practised, and, of course, tobacco.

I have no idea! Maybe it´s not god enough!

This stock will strongly outperform is managment is only decent. They have nice labels that should be easy to market

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.

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.

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!!!

this is a sleeper stock. low debt compared to deo. get ready to go up up up.

Too many VP's

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.

Never underestimate the people's ability to buy booze in a recession.

10 times next year's earnings and has a lot of "trade down" type brands in case the recession worsens.