Constellation Brands (NYSE: STZ) produces and markets more than 250 brands of wine, spirits and beer, in about 150 countries. The Wines division, the largest maker of wine by volume in the world, is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Tsingtao, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.
The company pleased investors earlier in the week, when it reported fiscal Q1 EPS of 34 cents and revenues of $931.8 million. Analysts had been looking for 31 cents and $906.1 million. The highlight of the quarter was a 24% year over year rise in branded wine net sales. Management also guided FY09 EPS to $1.68-$1.76, versus consensus of $1.70.
5 Stocks Dad Will Love Forget ties. For Father's Day this year give him something of real value -- shares of some great companies that make products men love. They include O'Reilly Automotive, The Stanley Works, Diageo, Dick's Sporting Goods and Best Buy. 5 Stocks Dad Will Love - Kiplinger.com
Is Water the New Oil? By 2030 nearly half of the world's population will inhabit areas with severe water stress. In the coming decades, as growing numbers of people live in urban areas and climate change makes some regions much more prone to drought, water -- or what many are calling "blue gold" --will become an increasingly scarce resource. Billionaire T. Boone Pickens thinks water is the new oil -- and he's betting $100 million that he's right. If he's right, T. Boone Pickens is a modern-day John D. Rockefeller. Pickens owns more water than any other individual in the U.S. and is looking to control even more. There Will Be Water - BusinessWeek
Brown-Forman Corporation (NYSE: BF.B) is engaged in the manufacture, bottling and marketing of alcoholic beverages. It provides whiskies, bourbons, wines, tequila, liqueurs, vodka, rum, gin and ready-to-drink products, under a variety of well-known brand names. Spirit products include Jack Daniel's, Canadian Mist, Early Times and Southern Comfort. Wine labels include Bolla, Fetzer, Bel Arbor and Five Rivers. The company's beverages are sold in more than 130 countries. Diageo (NYSE: DEO) and Constellation Brands (NYSE: STZ) are major competitors.
The firm pleased investors last week, when it reported Q4 EPS of 81 cents and revenues of $772.3 million. Analysts had been looking for 69 cents and $751.2 million. Management also guided FY09 EPS to $3.73-$3.98 ($3.84 consensus). The outlook incorporated expectations for continued international growth and anticipated increases in fuel and raw material costs.
Father's Day is a special occasion for many of us, a day to show our daddies how much we love them. We give dad some extra attention that day and usually also a present that could make him happy. Kiplinger.com has an interesting idea -- one that I really like -- for a Father's Day present you may want to consider: Find a good stock that could bring him a lot of money.
Let's look at some of the companies Kiplinger's Anne Kates Smith believes would be good options this year:
O'Reilly Automotive (NASDAQ: ORLY) is an auto parts retailer that is facing weak demand as a result of soaring crude oil prices. However, analysts believe the company's strategy to buy CSK Auto will bring a lot of national success. ORLY is expected to show earnings of $1.76 per share this year and $2.02 next year.
Stanley Works (NYSE: SWK), headquartered in New Britain, Conn., has the advantage of being one of only two companies offering a complete line of hand tools for consumers. The company focuses its performance on both its industrial tool division and a security business. Analysts forecast a profit of $4.18 this year, and $4.63 a share for next year.
The Boston Beer Company (NYSE: SAM) is America's largest microbrewer, producing more than twenty seasonal and year-round varieties of Samuel Adams brand craft-brewed beers at facilities in Cincinnati and Boston. The company moved to boost its capacity last summer, with the purchase of a Pennsylvania brewery from Diageo (NYSE: DEO). The new facility is expected to begin producing Samuel Adams beers in the third or fourth quarter of 2008. The company also makes and distributes Twisted Tea brand malt beverages and HardCore brand ciders. Products are distributed to retailers in the US, Canada, the Caribbean, Europe and the Pacific Rim. Anheuser-Busch (NYSE: BUD) is a major competitor.
The firm pleased investors last week, when it reported Q4 EPS of 46 cents and revenues of $92.2 million. Analysts had been looking for 35 cents and $88.9 million. Management also guided FY08 EPS to $1.70-$2.00, versus Street consensus of ($1.68).
The currency of our realm, the US Dollar, has been losing value for many years, but lately the results of this sad state of affairs have become increasingly more evident. Concerns are mounting on a global basis not just in the United States. The euro, once pegged at a buck, is now trading at $1.55, while gold has passed $1,000 and oil has continued its charge, breaking through the $110 per barrel mark.
While a good deal of this problem is home grown, the pain is being felt all around the world. We have read many stories about how the American economy is a smaller part of the global economy and becoming somewhat detached. This is nonsense. What has happened is that the global economy has become infinitely more integrated and like any integrated structure (the architect speaking), what occurs in one place is felt everywhere.
The Federal Reserve Board, led by Chairman Ben Bernanke, has been watching the economy in an extremely measured fashion, bordering on casual. To those who see beyond Bernanke's calm demeanor, one should imagine a stock trader of old, holding the ticker tape up to his eyes and monitoring every change, every blip in the market as the ticker tape machine clicks away, spewing out the latest market activity.
Earlier in the week I posted about finding the market bottom using that age-old handheld calculator, a white paper napkin. So, unfortunately it looks like I may be right again. Not exactly something I was hoping for, but if it has to be, it has to be. I wonder if my old napkin can outperform Wall Street super computers?
Is this an auction to the bottom? Are investors bidding things down instead of up? Looks like it from all the negative sentiment. Consumer sentiment is down, and short sellers are all excited, increasing their negative positions to new highs every day.
And here is the all-telling sign of capitulation: the ever-lying overly optimistic government is starting to admit how bad things are and throwing hundreds of billions of dollars at the problem. When does the turnaround come?
MOST NOTEWORTHY: Novartis, AIG, Diageo, and BEA Systems were today's noteworthy downgrades:
HSBC downgraded Novartis (NYSE: NVS) to Underweight from Neutral, as they believe the company's mid-single digit pharma sales growth is not sustainable.
AIG (NYSE: AIG) was downgraded to Market Perform from Outperform by Keefe Bruyette due to their concerns about the company's deteriorating profit trends.
Diageo (NYSE: DEO) was lowered to Neutral from Buy by Goldman Sachs to reflect a lack of near-term catalysts.
Deutsche Bank downgraded BEA Systems (NASDAQ: BEAS) to Hold from Buy, as they believe it is likely that the acquisition will close in April.
OTHER DOWNGRADES:
Live Nation (NYSE: LYV) was dropped to Hold from Buy by Morgan Joseph.
Jackson Hewitt (NYSE: JTX) was dropped to Neutral from Buy at FTN Midwest.
Roth Capital downgraded Collagenex (NASDAQ: CGPI) to Hold from Buy.
Credit Suisse lowered MFA Mortgage (NYSE: MFA) to Neutral from Outperform.
TheStreet.com's Jim Cramer says these are the stocks that you should watch.
Some stocks have just been totally given up on, as if nothing good can ever happen to them. Check out Masco (NYSE: MAS) (Cramer's Take) , for example. Masco's a great company, always has been -- a dominant supplier to the housing industry, both remodel and original. This company, which MAKES money, is selling at almost a 5% yield and no one cares.
Or how about Fortune Brands (NYSE: FO) (Cramer's Take)? It has a terrific housing component -- dominant player -- and one of the best spirits businesses. We found out from Diageo (NYSE: DEO) recently that they have a great business in spirits, and the company may be on the verge of getting Absolut, a fantastic brand. The stock trades at an amazingly low multiple. Or consider Black & Decker (NYSE: BDK) (Cramer's Take) , one the great innovators with a classically pro-shareholder bias.
These companies are making good money in the worst environment imaginable. They have decent balance sheets. When this period ends, they will be dominant players, taking share from everyone.
In a skittish market, it's best to look for companies with the resources, experience, and geographic footprint necessary to ride out what could be more-challenging economic conditions in the year ahead. One company that fits the above bill is Diageo (NYSE: DEO).
Diageo is the world's largest producer of alcoholic drinks, with a stable of well-known brands, including Johnnie Walker Scotch, Smirnoff vodka, and Seagram 7, among others.
In general, analysts see 6%-9% revenue growth in the U.S. and solid, double-digit growth in Latin America and Asia. Modest growth is expected in Europe. Operating margins are better than adequate. Moreover, DEO's four-continent footprint should help the company deal with a U.S. economic slowdown, if one occurs in 2008. The Reuters F2007/F2008 EPS consensus estimates for DEO are $4.46/$4.92.
MOST NOTEWORTHY: RadiSys, Diageo plc, Vitesse, Big 5 Sporting Goods and Coca-Cola Enterprises were today's noteworthy upgrades:
Jefferies upgraded shares of RadiSys (NASDAQ: RSYS) to Buy from Hold following the Q3 upside to reflect the large ramp of new business expected in 2008.
Lehman raised its rating on Diageo plc (NYSE: DEO) to Equal Weight from Underweight and has increased confidence that the group can increase margins.
CIBC upgraded shares of Vitesse (NASDAQ: VTSS) to Sector Performer from Sector Underperformer following the company's business update, as they believe progress is being made on numerous fronts.
Nollenberger upgraded shares of Big 5 Sporting Goods (NASDAQ: BGFV) to Buy from Neutral following the better-than-expected Q3 results and improved full-year outlook, as they believe visibility has improved significantly.
Citigroup upgraded Coca-Cola Enterprises (NYSE: CCE) to Buy from Hold on valuation as they believe the stock is undervalued given Glaceau's expansion to European markets. The broker recommends taking profits in Pepsi Bottling Group (NYSE: PBG) and swapping into CCE.
Most mergers are driven by the notion, sometimes wildly mistaken, that the combination will bring both a competitive advantage. Some pairs of companies, however, seem so intuitively right for one another, no bottom-line considerations should be allowed to interfere with their matrimony. Like an empty rental and a copper thief, these two seem drawn together.
The leader in the mortgage meltdown, Countrywide Financial (NYSE: CFC) managed to leverage its bon-homey, don't-ask-don't-tell lending policies into a corporate disaster. Where, you might ask, can it turn to make lemonade out of these lemons?
To answer this I asked myself, what do people do when the mortgage bill is greater than the sum of their paychecks, savings, hockable goods and child's piggy bank? Usually, when the going gets tough, the tough go drinking. Who, then, would be a better partner for Countrywide than distilling giant Diageo plc (NYSE: DEO)?
The newly dispossessed won't be drinking alone, either. With the CEO selling off his holdings, the SEC reviewing the company's stock option awards, and massive layoffs through the industry, millions of us with a piece of the mortgage business could use a stiff shot of J&B with a Guinness chaser.
Yesterday's WSJ's "Heard On The Street" column (subscription required) has published examples of recession-resistant stocks, in order to better-prepare individual investors for a potential additional downturn in the U.S. economy.
We took it a step further. What follows is a more panoramic view of each stock, including chart analysis.
AT&T(NYSE: T): the telecom giant has become a growth company. T's chart is healthy with the stock recently broken out to $42.50.
"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."
One such stock, according to the analyst with Internet Wealth Builder, is Diageo PLC (NYSE: DEO). He says, ""London-based Diageo is the largest international manufacturer and distributor in the beverage alcohol industry, which is virtually recession-proof."
Many of its brands, he notes, will be immediately recognizable: Smirnoff, Guinness, Johnnie Walker, Captain Morgan, Jose Cuervo, Bushmills, J&B Scotch, and our own Crown Royal. In fact, he observes, 17 of the company's brands are among the top 100 premium spirit brands in the world.
Rogers explains, "Its strategy is to drive organic growth by taking leadership positions in every category in which it competes. The company also looks to exploit opportunities for growth in such key emerging markets as China, India, Russia, and Brazil."
and markets more than 250 brands of wine, spirits and beer, in about 150 countries. The Wines division, the largest maker of wine by volume in the world, is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Tsingtao, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.
Father's Day is a special occasion for many of us, a day to show our daddies how much we love them. We give dad some extra attention that day and usually also a present that could make him happy. 
The currency of our realm, the US Dollar, has been losing value for many years, but lately the results of this sad state of affairs have become increasingly more evident. Concerns are mounting on a global basis not just in the United States. The euro, once pegged at a buck, is now trading at $1.55, while 
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Most mergers are driven by the notion, sometimes wildly mistaken, that the combination will bring both a competitive advantage. Some pairs of companies, however, seem so intuitively right for one another, no bottom-line considerations should be allowed to interfere with their matrimony. Like an empty rental and a copper thief, these two seem drawn together.
"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."
Wal-Mart's launch of $20 slimming jeans will be a huge success
Why I spent some of my stimulus check on GE
Why the dollar will keep falling
