Brick Brewing Company Ltd. (BRB.TO)

(A Top Pick Jan 28/16. Up 42.92%.) He still really likes this. They are benefiting from the continuing move to craft beer and a lot of the legislative changes that are happening in the Ontario market. Also, beer is now being sold in grocery stores in Ontario.

He bought it at about 25 cents and sold 25% at $1.54. He was trying to sell more but the market would not take it. Now it is in the $3 range and is thinking about selling it next year so as to defer taxes. They have just said they are doing very well. They have a new factory and are packing a lot out of it. It seems they are firing on almost all cylinders. He would not buy it here. He would love to see them taken over but is not tipping his beer to it right now.

They've done a great job of turning the company around in the last couple of years, but it is getting pricey at 12 times. They've been focused on cutting costs. He would take profits at these levels. He wouldn't pay much attention to the dividend.

(A Top Pick Jan 28/16. Up 63.08%.) There have been a lot of good things happening. They’ve been growing and have a brand-new facility in Waterloo. Have been winning new contracts to fill that capacity up. There has been a huge amount of legislative change in Ontario in the beer industry, which is allowing craft brewers like this one, to get a lot more space on the shelves.

A good example of an expensive company, but expensive because they serve a stable industry. He considers the alcohol industry as almost recession proof. They’ve grown their dividend over time. It has a premium valuation, because at any point in time, one of the bigger alcohol companies could just gobble them up. He likes the company.

There is seasonality to the drinking of beer. Investors want to be somewhere when action is taking place. They want the summer months. Brick is a smaller company. But other things will be a huge factor. We are out of the seasonal period now. The trend will be broken here if it falls below $2.70 and will be time to get out.

There is a lot of competition in this space. Doesn’t know the company well, but looking at the chart, it looks to be breaking out from a long-term consolidation pattern over the last 2 years. This might be a nice time to add.

Management is doing a great job turning the company around. They just licensed two brands from the US. He finds it to be fully valued.

It looks like this quarter could be a boffo quarter. It is not only the spring/summer season, but looks like their sales are really perking up. Have moved into a new facility and have taken care of some of their costs. He would like to see some company, swallow this.

One of the few publicly traded craft breweries in Canada. This has the opportunity to consolidate many of the smaller brewers in Canada. Ontario has installed some rules recently, to make it much more favourable for craft brewers to operate, giving them more shelf space in the beer stores along with changes in the LCBO. This could be open to a takeover at some time.

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.

There is a trend in craft beer. He always looks at this one because it has a nice stock chart. A well-run company, and craft brewing is where it is going. Big brands are losing market share to the smaller brands. 2% dividend yield.

What could be more non-economically sensitive than beer? They just built a new facility that gives them a lot more capacity. Overnight the shelf space for small brewers will go from 7% to 20% in The Beer Store. Grocery stores in Ontario are starting to sell beer and are choosing craft beer over regular beer. 2.7% dividend, good management team. There will be a lot of consolidation in the industry in the future.

You have a very calculating, carefully planning expander. What is in the way is that they have lots of extra capacity that they seem to be selling gradually. They should continue to do well.

Sold about 20% of his position last year. His target price is $2.34. Had a problem with the lockout of the hockey teams. CFO just left and this makes him a little leery. Increasing the utilization of their plant, which is critical in the business. Lowering of prices by big brewers hurt them.