Constellation Brands Inc (STZ)

It is interesting that they are investing into Canopy. He thinks it is more like a hedge for them. In the context it is a cheap hedge. This shouldn’t be the basis to invest in the stock. The marijuana space is nascent. He wouldn’t analyze the company with that component. He wouldn’t invest in this stock.

He owned this before they bought in Canopy. They own Corona and other Mexican brands, plus wine. The beers have been growing very well. STZ has one of the best growth rates in a sluggish sector. He isn't a cannabis bull, but he sees upside in this space. (1.4% dividend, Analysts' price target: $242.00)

He has not had a lot of experience with this company. Their investment in Canopy Growth last October, which makes it hard for him to value the company. It is diversified with alcohol, which is very recession proof.

A defensive stock. Acquired a cannabis company that will not contribute to growth for at least two years, but they will introduce cannabis drinks which has potentially huge upside. If it fizzles out, you're not paying for it. (Analysts’ price target is $244.)

Just announced taking a 10% stake in Canopy Growth (WEED-T). Chart shows a nice long upward trend going back 5 years. The sector is potentially a weaker one. Wouldn’t consider this as a pro-growth. If you own you might want to take a piece off right now and go back in the new year.

Gives exposure to alcohol generally and they are trying to grow in the wine space. They made acquisitions in Canada. Some of it is priced into the stock. His focus has been into more domestic and smaller companies. It is a good bet to get exposure to the wine industry which he is positive on.

(A Top Pick April 26/16. Up 20%.) It has been a good play. He saw the market shifting from consumer oriented stocks to more early cyclicals so he got out at that time.

(A Top Pick Feb 24/16. Up 25%.) Switched out of this given that it was a consumer staples name, and into more of the cyclical areas. He still likes the name. Trading at 21X forward earnings with a 17% long-term growth rate. Sales going forward could be challenged by Pres. Trump’s potential policy to raise tariffs on Mexican imports.

She likes booze companies. This is one of her favourites. It has been recently beaten up because they import a lot from Mexico. She sees a long term positive on the company. It is headline risk that has come through rather than fundamentals. (Analysts’ target: $180).

This is basically a consumer staples product, and fell off with the election, along with all the other consumer staples. This is not the time he would be owning this. January is the weakest month of the year for consumer staples. He would be looking to exit shortly.

A big product is Corona out of Mexico with a tariff potentially going from 2 to 35% under Trump. This stock sold off overnight and he thinks it is overdone.

Great company, diversified, and stable. He looks at it as a consumer staples product. It should be best to own it in the early summer months but he would be looking to exit in October.

It is a name that is in the news. There is a lot of consolidation going on in the industry. He missed this one. It has done phenomenally. Now it is a question of price. It went up too far too fast.

This has a number of things in its favour right now. Technically it is in a distinct upward trend, outperforming the market with positive momentum, so the technicals are good. Seasonality is more important, because on a seasonal basis it historically reaches a very important low right around the middle of October, and moves higher right through until the middle of February.

(Market Call Minute.) A good operator in that space. They’ll do well for the long-term.