Topic: How To Invest

Hi Pat: May I please have your opinion on Brick Brewing Co. Ltd? Thank you!

Article Excerpt

A: Brick Brewing Co. Ltd., $2.36, symbol BRB on Toronto (Shares outstanding: 35.0 million; Market cap: $84.0 million; www.brickbeer.com), is a Kitchener, Ontario-based maker of premium and value beers. Its main brands are Brick, Waterloo, Laker, Red Baron, Red Cap and Formosa Springs Draft. The company operates two breweries in Ontario—one in Kitchener; another in Formosa. The company sells most of its products in the province. It has less than 5% of that beer market. In March 2011, Brick purchased the Canadian rights to the Seagram Coolers brand. These drinks include vodka-based coolers, malt-based coolers and ciders. More recently, the company acquired a license to manufacture and package the Motts Caesar alcohol-based beverages. It also secured the exclusive Canadian rights to both the LandShark and Margaritaville brands of beer, cider, and malt-based coolers. The company’s revenue rose 11.6%, from $33.7 million in 2012 to $37.7 million in 2014 (Brick’s fiscal years end January 31). Revenue then fell to $36.3 million in 2015, but…