Topic: How To Invest

Pat: I have held a position in Big Rock Brewery for some time, only to see it drop a lot. What is the outlook going forward?

Article Excerpt

Big Rock Brewery Inc., $5.60, symbol BR on Toronto (Shares outstanding: 6.9 million; Market cap: $38.5 million; www.bigrockbeer.com), is a Calgary-based regional maker of draft and bottled beer. Big Rock brews premium beers without preservatives, using cold-sterile filtration instead of traditional pasteurization. Popular brands include Traditional Ale, Grasshopper Wheat Ale and Warthog Ale. The company sells its beers in nine provinces and two territories. It also exports them to South Korea. In April 2015, Big Rock opened a brewery and eatery in Vancouver. It plans to build a second one, in Toronto, next year. In the three months ended September 30, 2015, the new Vancouver operation and the launch of new products helped increase Big Rock’s revenue by 12.1%, to $11.8 million from $10.6 million a year earlier. The company also sold 14.0% more beer. However, it made just $76,000, or $0.01 a share. In addition to start-up costs for the Vancouver brewery, the company paid more for ingredients, packaging and interest. A..