Molson Coors Brewing Company (NYSE:TAP)

I usually think 'large-cap' when looking for stable, dividend paying stocks. To get a little outside the box, I tried screening for mid-cap income stocks with lower than market volatility, good yield, reasonable valuation, 4 or 5-star CAPS ratings and earnings growth over past few years. The screen turned up a total of 15 names, including seven profiled in the article.
www.fool.com/investing/dividends-income/2011/09/06/7-mid-cap-income-stocks.aspx

Of the seven, I think TAP looks the most interesting. I seem to recall looking at it some time ago and thinking it was expensive. I may not be remembering correctly (always possible), but it's definitely not expensive now. 11-ish times earnings, 3% yield, and right around book value - Molson Coors is worth a little more digging and a CAPS green thumb.

Besides, in the words of a Tom T. Hall song, I Like Beer.

pick of the day...need some stability in the port.

109. Molson Coors Brewing (NYSE: TAP) has been channeling down since earlier this year where it bottomed at $38. I think Molson is cheap. Target: $45-$50. There top line has taken a beating in the last few years but their earnings have increased. I call that excellent management. Perhaps they are using throughput accounting. I'm glad to see Bret Jensen agrees that Coors is cheap, especially considering their ability to grow earnings through tough times. On top of analyst upgrades and insider buys, they've done a good job raising their yield. I'm marking this outperform in CAPS.

http://beta.fool.com/bradford86/2012/01/03/price-market-part-20/

Current prices represent a buying opportunity, While growth will be slow and Coors is no longer a cult beverage, the Molson wing will continue to expand in the USA and take market share from the urine-sample peddlers whose drizzle currently control the USA.

12/16

Poised to grow again. Maybe not in the short-term, but will do well despite a slow growing or stagnant global economy.

The technological innovations regarding beer-cold identification are extraordinary.

Undervalued and safe ...

piotroski screen

Cheap with a good dividend. P/E under 12. Yielding 3.05%

Growing Retained Earnings at an alarming clip. Just announced a $1.2B share repurchase. Stock pays a 3% Dividend and trades at a P/E of 11. Company maintains large market shares in the U.K., U.S., and Canada and is growing it's international business. Even a few years of declining volume/sales shouldn't prevent the company from reflecting the long-term economic advantages of this business in the stock price.

Cheap

Get Ready for the Bounce, By Rich Smith

It's trading below book value....

People are not going to stop drinking beer with higher interest rates and stagnant underemployment. In fact, they are more likely to switch to cheap crappy beer like Miller and Coors.

Book Value= $7.8 + $700M avg annual net income = a margin of safety well over 30% for a neccesary second tier beer maker.

Hard times and global warming will combine to keep people thirsty for quality beer.

Ok balance sheet. 1.22B cash/1.96B debt.
1.2% Insider holding. Since 6 months, insiders have been net buyers.

Bad
Negative growth
P/FCF=33 !
This is a tracker.

Coors!

Benjamin Graham

undervalued