Lower costs on the way

Article Excerpt

ANDREW PELLER LTD. $7.90 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.9 million; Market cap: $117.7 million; Price-to-sales ratio: 0.4; SI Rating: Above Average) reported that its sales in its first fiscal quarter, which ended June 30, 2009, rose 13.8%, to $70.2 million from $61.6 million a year earlier. The gain was mainly because of last year’s purchases of a home-winemaking company and an importer of premium wines. Without these, sales climbed 7.3%. Earnings fell 10.5%, to $2.5 million, or $0.17 a share, from $2.8 million, or $0.19. However, a recently completed restructuring plan should lower Andrew Peller’s annual expenses by $2.6 million starting this year. Andrew Peller is a buy. buy…