Sunday, June 8, 2014

" I took a look at the two year chart for Constellation Brands, (Symbol STZ, NYSE) and was pleasantly surprised by how well it has done. Can it keep the momentum going?"

Dow Jones Industrial Average 16,924.28 (UP, and All-time High)  Week ending 06-06-2014 -    NASDAQ 4321.40

Something keeps going up. I hope it is many of the stocks that you own in your IRA. 

My jaw dropped when I came across the 2 Year stock chart of:

 Constellation Brands Inc. (Symbol STZ, $82.99). The stock has moved from a price of $15.00 a share to $83.00. A "4 and 1/2 bagger" in Peter Lynch parlance. This maker and distributor of alcoholic beverages has a nice collection of products.  

What could be better than the 2014 FIFA WORLD CUP Brazil starting in 4 days, June 12th  and your company being the seller of Corona Extra, Modelo Especial and Corona Light? What could be better? While you were asleep everyone, including your kids, has been playing soccer and becoming huge soccer fans. The World CUP is unequivocally the world's largest sporting event and people will be drinking lots of Corona. 

 Constellation Brands did $4.868 Billion dollars in sales producing $1.943 Billion dollars in Net Income. According to the company has a PEG ratio of 0.022 and a ROE of 48.24. I am a little suspect of that PEG ratio number, but we will go with it. 

STZ has an earnings rating in Investor's Business Daily of 96, an extremely high rating.

STZ had earnings per share of $3.20 in 2013 and is projecting at $4.11 per share for 2014 and 2015 is looking like $4.59 per share. 

I also like that Insiders have been buying the stock all along the way over the 2 years.

I can also give my personal endorsement to Constellation's,  Estancia Pinot Noir wine. It is excellent.

So, buy the stock in small increment buys, with the Dow at this level and it being the June lull time, and bet your money on the Brazilian Soccer team, since the home team has won since 1930. This will be a good long term 2-3 year investment for you.

Happy Gardening,


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