ANDREW PELLER LTD. $14 - Toronto symbol ADW.A

ANDREW PELLER LTD. $14 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $200.2 million; Price-to-sales ratio: 0.7; Dividend yield: 2.9%; TSINetwork Rating: Above Average; www.andrewpeller.com) reported that its sales rose 2.6% in its fiscal 2014 third quarter, which ended December 31, 2013, to $81.9 million from $79.8 million a year earlier. That’s mainly due to strong demand for the company’s premium wines during the Christmas shopping season.

Earnings fell 9.2%, to $6.0 million, or $0.43 a share. A year earlier, Peller earned $6.6 million, or $0.47 a share. The company is paying more for wine and juice on international markets. The costs of a restructuring plan, which includes outsourcing distribution functions and cutting marketing expenses, also hurt its profits. If you exclude all unusual items, earnings fell 4.4%.

Andrew Peller is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.