Friday, October 4, 2013

Molson Coors Canada 2

On my other blog I am today writing about Don Vialoux, guru of market seasonality ...continue...

I do not own this stock of Molson Coors Canada (TSX-TPX.A, NYSE-TAP). In 2008 I did a spreadsheet on this stock as it has recently been recommended and generally, beer companies make good money. Labatt's was one of the original companies that I purchased and I did very well with it before it was bought out.

Looking at insider trading, I can find information on Molson Coors Brewing Company (NYSE-TAP). Over the past 3 months there was $0.2M of insider buying and $8.8M of insider selling. Over the past year there was $10.6M of insider buying and $28.8M of insider selling.

The 5 year low, median and high median Price/Earnings per Share Ratios are 10.99, 12.28 and 13.66. The current P/E Ratio is 12.67 based on a stock price of $51.96 and 2013 earnings of 4.10 CDN$. I get a Graham Price of $63.08 and the 10 year low, median and high Price/Graham Price Ratios are 0.79, 0.91 and 1.04. The current P/GRP Ratio is 0.82 based on a stock price of $51.96.

The 10 year Price/Book Value per Share Ratio is 1.21 and the current ratio is the same at 1.21. The current dividend yield is 2.54% and the 5 year median dividend yield is some 6% lower at 2.39%. All my stock price test show that the stock price is reasonable as it is relatively just around the median mark.

There are no analysts following the Molson Coors Canada, but some follow Molson Coors Brewing Company (NYSE-TAP). The analysts have recommendations of Strong Buy, Buy, Hold and Underperform. The consensus recommendation would be a Hold. The consensus US$ stock price over the next 12 months is $54.00. This implies a total return of 9.68% with 2.54% from dividends and 7.14% from capital gains.

Dara Mohsenian of Morgan Stanley had a discussion with Molson Coors about their 2nd quarterly results.

I do not think anything much is happening with this company. It has a decent dividend and probably will growth their dividend over time, but I do not see this company as a good money maker. See my spreadsheet at tpx.htm.

This is the second of two parts. The first part was posted on Thursday, October 3, 2013 and is available here.

Molson Coors Brewing Company is a leading global brewer delivering extraordinary brands that delight the world's beer drinkers. It brews, markets and sells a portfolio of leading premium brands such as Coors Light, Molson Canadian, Carling, Blue Moon, and Keystone Light across North America, Europe and Asia. It operates in Canada through Molson Coors Canada; in the US through MillerCoors; and in the U.K. and Ireland through Molson Coors UK. Its web site is here Molson Coors.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.

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