DIAGEO PLC ADRs $115 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.8 million; Market cap: $72.2 billion; Price-to-sales ratio: 4.5; Dividend yield: 2.2%; TSINetwork Rating: Above Average; www.diageo.com) fell 5% recently on news that U.S. securities regulators were looking into allegations that the company shipped more cases to distributors than they ordered. Liquor producers can record shipments as sales when they ship them to the wholesaler.
The company is co-operating with officials, but the possibility that it may have to restate financial results from prior periods will keep weighing on the stock.
Diageo is a hold.