Colin StewartBrick Brewing Company Ltd.BRB.TOPAST TOP PICKDec 01, 2016

March to June is optimal time to buy. Big runup earlier this year didn’t materialize into a positive result. Worries him that there’s a lower significant high. Investor exhaustion. If it breaks $3.50, could see significant downside. Be cautious.

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.)

He 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.

(Market Call Minute) Management is doing a great job in a tough business. The stock got way ahead of itself. They had a few hiccups in the last quarter. Wait for the price to come down before owning this stock.

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.

(Market Call Minute.) A very solid brewer with excellent beer products. If it got down to the mid-$2, he would be a buyer.

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.

Normally beer stocks do well in the summer. This year it has been in a trading range. There is encouragement here with a little pick up. If it breaks above resistance then it could move to the upside. Hold for now until the end of summer.

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.

What normally happens with the smaller brewers is that they get taken out. He likes the company, but doesn’t follow it closely. A good story with good earnings growth.