Opinions Benj Gallander
Brick Brewing Company Ltd.BRB.TOCOMMENTApr 20, 2016
Benj GallanderStock price when the opinion was issued
As of Jun 11, 2019. Market Open.
You might be interested:
Colin StewartColin StewartColin Stewart
Fifth largest brewer in Canada. New facility only operating at half capacity, so room to grow. Strong management team. A big, efficient producer which could roll up the smaller brewers. Could also be a takeout target in future. (Analyst's price target is $ 4.71.)
Colin StewartHe paid $0.25 and sold out at $3.00. He is not going to cry about missing the recent upside. He likes the company and the CEO and likes their beer. The stock price is too high now and he would think of selling. It is weather dependant and seasonal. They started paying a dividend about two years ago.
Has been very good to him. He bought it at around $.25 several years ago, when they were potentially on the verge of bankruptcy. Brought in a new CEO who had been at another brewery that got taken over. Sold out a few months ago at $3.99. It is still over $3, so it has zero interest for him.
Management did a great job of turning the business around, including the lunching of new products. It has been a good story. One of the reasons for the pullback was that it had run up a lot. Also, we had a colder summer and that leads to less consumption. It is a potential takeout target. The trend has been for consolidation and so with this pull back it could be an interesting entry point.
Colin Stewart
Beer is a really good space. Consumer Staples, alcohol business tends to be pretty stable. Chart shows a nice up-trend from the beginning of 2015 to the present time. If it can hold above the $3.50 or push back above that, it will probably continue to shake out some weak hands. Some of the technical indicators are getting a little soft right now, but there is some pretty good support at around $3.20.
Very impressed with management. They’ve done a really, really good job in turning the company around. It’s a very competitive business, beer mainly, but now they have some spirits they are manufacturing, with the rights to sell, market and distribute. The stock is rather expensive, but they’ve been delivering good quarterly sales growth/earnings growth. Wait until the earnings catch-up with the stock price.
Bought this at $.25, and sold some at around $1.50. His target price is $2.24, but decided to hold the rest of his holdings. They completely surprised him when they started to pay a dividend. When a company starts paying a dividend, over the next 3 years it normally moves up more than the market price. Would love to see this being bought out. He is happy to hold it, but is monitoring it closely, as to what price to actually sell.