Popular new wines fuel Peller’s gains

Article Excerpt

ANDREW PELLER LTD. $20 (Toronto symbol ADW.A; Income Portfolio, Consumer sector; Shares outstanding: 14.3 million; Market cap: $286.0 million; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.andrewpeller.com) is Canada’s second-largest wine producer, after Constellation Brands. Peller continues to successfully launch premium-priced brands. In the second quarter of its 2016 fiscal year, which ended September 30, 2015, the company’s sales rose 2.9%, to $85.2 million from $82.8 million a year earlier. Earnings jumped 41.7%, to $0.51 a share from $0.36. Without unusual items, such as losses on hedging contracts Peller uses to lock in foreign exchange rates, earnings gained 58.1%. Andrew Peller is a buy. buy. …