Molson Gains from Cost Cuts, Warm Weather

Article Excerpt

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $90 and TPX.B $90; Conservative Growth Portfolio, Consumer sector; SI Rating: Average) has gained 25% in the past three months, mostly due to the company’s progress in cutting its costs. The company’s sales probably rose during the year-end holiday season, which is historically a busy time for brewers. Warmerthan- usual winter weather in the eastern part of North America should also help spur beer sales. Molson Coors now aims to expand sales and market share with several new beers. For instance, it recently started selling a new beer in the UK that has about half the alcohol of regular beer. That should appeal to health-conscious baby boomers. The company also hopes to take advantage of growing interest in premium specialty beers. It recently launched Blue Moon, a Belgian-style beer with a citrus-like taste. The company should earn $4.80 U.S. a share in 2007, and the stock trades at 16.1 times that figure. The $1.28 U.S. dividend…

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