Constellation Brands, Inc. (STZ)

If this is a bad pick and I start drinking, I am sure it will do better,

I love this stock.

I've been holding STZ for a while now. I wasn't content to sell at
the $29 peak, and after the drop, I just bought more around $19. This
is a solid company with solid products. Being in the alcoholic
beverage business means steady, recession-proof revenue.

The only reasons STZ dropped are because their recent acquisitions
cost them a few bucks in the short term. Also, the cautiously
conservative company reports said that 2008 might be a slow
year...maybe...citing wine gluts from Australia lowering their chances
of selling wine in UK.

Since then, the wine glut has been forecasted as waning, their revenue
is up, and they've acquired a couple more high-profile and high-sales
brands. This is a great time to buy while prices are under $24. I
think it's worth $25 right now, and sales are only going to increase.
I'm betting on $30 by the end of the year. Go long, but you'll see
gains in the short as well.

The scientific community is starting to tout the health benefits of wine. Also Americans are becoming increasingly snobish on what they drink, demstic beers are out of style, wine spirits and imports are more in style... i know what i'm drinking this holiday season!

Bottoms Up!

This company is a master at acquisitions, and has become the world largest wine company along the way. The are also involved in beer and spirits.

Constant acquisitions are a risk, but Constellation is very good at ehat they do.

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

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.

Constellation brands (STZ) is the best wine and booze company on the planet. Even if the market tanks, the brokers still have to have a drink (possibly even more in a bad market). Core holding

When recession rears it's ugly head, people drink more. The spirits producers as a whole have been beaten down, and a few of them are nice buys right now, especially with the cloud of recession or mid-cycle slowdown looming.

Plus, this one's a Morningstar 5 star pick.

Potent at current price. Well managed company, great strategic focus, great brands and low PE. Had you bought five years ago you'd have a double bagger. Invest now for the next five years.

Deconsolidating Beer sales; Sold Matthew Clark

Also investing in Vodka. I originally bought into STZ for their premium wine market. As they loose focus on this market, I expect profits to fall.

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.

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?

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

Mmm...alcohol...

Will grow through acquisitions, this sometimes causes a drag on earnings, Management will finally wake up and focus on internal growth..
12-24 months from now you'll wish you bought at these levels.
This company needs to reward shareholders and it eventually will.
A dividend is needed to attract more shareholders and bring attention to this company

Holiday season is coming and should be a strong period for STZ

Wife likes Canadaigua wines...

Constellation Brands is a leading international producer and marketer of beverage alcohol brands with a broad portfolio comprising the wine, imported beer (into the United States) and spirits categories. The company generates its revenue from two business segments, Constellation Wines which includes categories like table wine, dessert wine and sparkling wine and Constellation Beers and Spirits which imports and markets a line of beer, and produces, bottles, imports and markets a line of distilled spirits.

The beverage alcohol industry is witnessing the phase of consolidation of wholesalers and retailers and thus aggravating the competition. As a strategy to maintain its competitiveness the company has recently acquired Vincor International, Canada’s largest producer and marketer of wine. This move would enable the company to widen its global presence and become the largest premium wine company in the U.S. Moreover acquisitions over the past three years which includes companies like Robert Mondavi, Hardy and a 40% stake in Ruffino has further strengthened its product portfolio.

The wine consumption has been on a rise across the globe. Particularly in the U.S. and the U.K. wine and spirit categories are growing at a faster rate than the beer category. This should benefit the company as it generates 70% of its revenue from wine segments. Besides on a global basis, within the wine category, premium wines are growing faster than value-priced wines. In the U.S., there has been shift in demand towards imported beers as compared to domestic beers, and premium spirits are growing faster than value-priced spirits. Constellation Brands focus on premium spirits and premium, super-premium and fine wines should help the company to boost its revenues.

Additionally, the management is expecting EPS for the fiscal 2007 to be in the range of $1.65 to $1.70 as compared to $1.36 recorded in 2006. Looking at these positive outlooks it seems that Constellation Brands is set to shine in the future.

They've reduced their expected earnings for 2007. Price has plunged significantly. Merger likely.