Molson Coors
Toronto symbol TPX.A, Toronto symbol TPX.B and New York symbol TAP, is the world's fifth-largest brewer by volume. It operates mainly in the United States, Canada and Europe.
Rising raw material costs are a growing challenge for these two beverage makers. However, their well-known brands give them strong customer loyalty. That makes it easier for them to raise prices without hurting sales volumes. Their growing overseas operations also enhance their long-term prospects.
PEPSICO INC. $64 (New York symbol PEP; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.6 billion; Market …read more »
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $41 and TPX.B $42; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 181.1 million; Market cap: $7.4 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.1%; TSINetwork Rating: Average; www.molsoncoors.com) reports that its sales rose 9.1% in the three months ended September 24, 2011, to $954.4 million from $875.0 million a year earlier (all amounts except …read more »
Beer demand has slowed in Canada and other developed countries, due to high unemployment and the weak economic recovery. However, sales are growing strongly in emerging markets, where rising prosperity is making beer more affordable.
Molson Coors is well-positioned to profit from this trend. The company owns some of the world’s top beer brands, particularly Coors Light. As well, it is …read more »
These three companies all have large overseas operations. That exposes them to a wide variety of risks, including volatile currency-exchange rates and political unrest. However, all three are focusing on fast-growing markets. That enhances their long-term prospects.
THOMSON REUTERS CORP. $38 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 833.7 million; Market cap: $31.7 billion; Price-to-sales ratio: 2.4; Dividend …read more »
Rising incomes in developing countries are fuelling demand for high-quality alcoholic beverages. That’s good news for Diageo and Molson Coors. Both companies are using their well-known brands to increase their sales outside North America and Europe.
DIAGEO PLC ADRs $69 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 626.4 million; Market cap: $43.2 billion; Price-to-sales ratio: 2.8; Dividend …read more »
The dividend yield of the S&P/TSX Composite Index is now around 3%, up from 1% in the early part of this decade. This rise is partly because more companies are using their excess cash for dividends instead of buying back shares.
This new focus on dividends is a good thing for investors. Dividends can contribute up to a third of …read more »
Blue chip stocks in the Consumer sector can provide stability during a recession. Typically, these companies sell staples, like soap, soup and beverages that consumers must buy no matter what the economy is doing.
Strong consumer stocks share a number of characteristics. These include geographic diversity to protect them from regional economic difficulties, a record of rising cash flow and …read more »
PENGROWTH ENERGY TRUST $8.64 (Toronto symbol PGF.UN) reported that its cash flow for the first quarter of 2009 fell 57.5%, to $0.37 a unit from $0.87 a year earlier. Higher interest expenses, performance bonuses and royalties were the main reasons for the drop. Still, its $1.20 distribution rate seems secure, and yields 13.9%. Buy.
IMPERIAL OIL LTD. $41 (Toronto symbol IMO) …read more »
MOLSON COORS CANADA INC. (Toronto symbols TPX.A $50 and TPX.B $50; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 183.6 million; Market cap: $9.2 billion; SI Rating: Average) recently merged its brewing operations in the United States into a new joint venture with the parent company of Miller Brewing.
Molson Coors has a 50% voting stake in this new company, called MillerCoors, …read more »
Andrew Peller and Molson Coors have both moved down lately, but by less than the drop in the overall market. That’s because demand for wine and beer tends to remain steady, regardless of the direction of the overall economy. Cost controls are also helping them expand earnings.
ANDREW PELLER LTD. $7.50 (Toronto symbol ADW.A; Income Portfolio, Consumer sector: Shares outstanding: 14.9 …read more »
