Constellation Brands Inc (STZ)

She likes booze companies. This is one of her favourites. It has been recently beaten up because they import a lot from Mexico. She sees a long term positive on the company. It is headline risk that has come through rather than fundamentals. (Analysts’ target: $180).

This is basically a consumer staples product, and fell off with the election, along with all the other consumer staples. This is not the time he would be owning this. January is the weakest month of the year for consumer staples. He would be looking to exit shortly.

A big product is Corona out of Mexico with a tariff potentially going from 2 to 35% under Trump. This stock sold off overnight and he thinks it is overdone.

Great company, diversified, and stable. He looks at it as a consumer staples product. It should be best to own it in the early summer months but he would be looking to exit in October.

It is a name that is in the news. There is a lot of consolidation going on in the industry. He missed this one. It has done phenomenally. Now it is a question of price. It went up too far too fast.

This has a number of things in its favour right now. Technically it is in a distinct upward trend, outperforming the market with positive momentum, so the technicals are good. Seasonality is more important, because on a seasonal basis it historically reaches a very important low right around the middle of October, and moves higher right through until the middle of February.

(Market Call Minute.) A good operator in that space. They’ll do well for the long-term.

This has had tremendous price momentum. It is really a consolidator of wineries and alcoholic beverages. Valuation is OK. Good ROE’s, a little expensive on EB to EBITDA and Price to Free Cash Flow. They have a decent balance sheet, so can continue their strategy of rolling up smaller competitors. Dividend yield of 1%. Not super cheap.

(A Top Pick July 3/15. Up 41.42%.) The kind of name he would encourage investors to take a good strong look at. In the low volatile and consumer space. They own something like 140 different brands of wine.

(Market Call Minute.) A non-cyclical and can do quite well in a world where people are looking for predictability.

(Market Call Minute.) Loves this name. They are doing very well with Corona and their wine business. The consumer staples space is technically very strong.

They did good acquisitions. Growth of their brands is good. They are the premier player. They have delivered. It is still a growth stock.

(A Top Pick April 15/15. Up 34.6%.) This is an example where boring is fantastic. They have reported that they might be IPOing the Canadian Vintner collection.

Liquor and wine. The wine businesses are where they are starting to rip. They are one of the largest liquor distributor and consumer package companies out there. This is growing at 5% versus beer companies at 1% or 2%. Also, owns some very interesting beers. The wine is where they are really getting the pickup, because millennials are starting to want it, and there is a real move in wine sales. Yield of 1.02%.

In the alcoholic beverage space. Have a very broad portfolio of wine, imported beer and distilled spirits. Their major brand would be Corona in beer. This provides investors with both defence characteristics and growth attributes. Trading at 22X forward earnings. Has a 15% long-term growth rate, which is a good growth rate for a consumer staples name and still below market beta. Dividend yield of 0.89%.