Constellation Brands has been significantly gaining from strength in beer business over the years. Constellation Brands’ consistent focus on brand building and its initiatives to include new products are the key revenue drivers for the stock. It has been consistently generating strong cash flows from its beer as well as wine and spirits businesses STZ is good for long term investment.
One caveat. In all states that have legalized marijuana, beer sales have gone down. That could be why Constellation Brands recently bought a 10% stake in a marijuana company, Canopy Growth.
And Canopy Growth has applied for a listing (should be trading soon) on the NYSE. (CGC) You could trade it before on TSE under "WEED" and OTC under "TWMJF"... but the listing on NYSE will bring it center-stage. There's going to be a great play here. I expect CNBC to make a big deal about it when the listing starts to trade... and when it comes out of the gate its gonna jump. Once the dust has settled however, it will reverse nicely and drop below the initial price. That may happen on day one... or it might take a couple days or even weeks... but this company is highly leveraged and they are cash-flow negative in a big way. Its a story stock in many ways. And that story will be bought hand over foot early on as retail players and cannabis ETF's scoop it up. I'll be following this one and I need more info on how these shares will be structured with regards to "WEED" ... but stay tuned... this will be a good one to trade both ways.