Stockchase Opinions

Michael Sprung Lakeport Brewing Income Fund TFR.UN-T DON'T BUY Oct 18, 2006

7.6% yield. The problem with the smaller breweries is the economies of scale and whether they are able to compete. To compete, they have to have very loyal customers. Not sure if in the long-term they have the scale to compete effectively.
$20.300

Stock price when the opinion was issued

breweries beverages
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

DON'T BUY
Will be paying a special dividend. Brewing is a tough business. They have done very well but not sure this is the type of firm he would be looking for in a trust for long-term earnings stability.
TOP PICK
Has been able to take market share with low-cost beer. Expect they will go on in a great wave. 7.8% yield.
TOP PICK
A well-run trust. Very innovative marketing strategy. A lot of distribution growth potential. Do a good job of controlling costs. Low payout ratio. Trades at about 9 EBITDA.
BUY
Could do fairly well. They have done a great job. Doesn't know how much farther they have to go in increasing market share. May have been oversold.
PAST TOP PICK
(A Top Pick Nov 29/05. Up 49%.) Reported amazing results. Earnings were up almost 100% year-over-year. Continues to gain market share.
PAST TOP PICK
(A Top Pick Oct 27/06. Up 4.5%.) A relatively small business and has a tremendous ability to grow, generating increases in revenue and cash flow.
SELL
Has had an offer to buy them out by Labatts. Would be tempted to take the profits.
COMMENT
They are in the value segment of the beer market. ($1 a beer!) Have recently had a $28 offer by Labatt’s Brewery, which is about a 35% increase to the trading price. If you own, he suggests you tender to the offer.
PAST TOP PICK
(A Top Pick Sept 21/06. Up 35.3%.) Was acquired.