Andrew Peller Ltd. $7.50 – Toronto symbol ADW.A

ANDREW PELLER LTD. $7.50 (Toronto symbol ADW.A; Income Portfolio, Consumer sector: Shares outstanding: 14.9 million; Market cap: $111.8 million; SI Rating: Above average) continues to benefit from strong demand for premium wines, as well as from new products and acquisitions. In its second fiscal quarter ended September 30, 2008, sales rose 13.3%, to $69.4 million from $61.2 million a year earlier. Earnings fell 7.8%, to $2.4 million or $0.17 a share from $2.7 million or $0.18 a share. However, the latest earnings included roughly $1.2 million in unusual pre-tax losses on interest rate and foreign exchange hedging contracts. The company will likely earn $0.85 a share in fiscal 2009, and the stock trades at 8.8 times that estimate. The $0.33 dividend yields 4.4%. Andrew Peller is a buy.

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