STZ should buy Castle Brands ( rox ). legendary billionaire investor Dr Frost has an investment in Castle Brands and ROX is a turnaround story predicted to turn a profit nest month.....jmho
Well, I guess I got my answer today. Cramer said to buy after earnings and Zachs has a hold. I'm
always afraid to buy any stock before earnings so I bought CTB instead. Could of made about 2G.
I wonder how it will trade today. Will it give back most of the bounce and maybe I can get in at 72.00
Constellation Brands Reports Third Quarter Fiscal 2014 Results
• U.S. beer business acquisition drives significant increase in third
quarter sales and earnings
• Achieves comparable basis diluted EPS of $1.10 and reported basis
diluted EPS of $1.07
• Increases fiscal 2014 outlook; expects comparable basis diluted EPS of
$3.10 - $3.20; expects reported basis diluted EPS of $9.65 - $9.75
• Improved outlook primarily driven by strong beer business performance
• Decreases debt by $166 million during the quarter
• Updates free cash flow projection; expects $525 - $575 million for fiscal
STZ bought Corona for 5.3 Billion in 2013.... Now 3Q 2014 STZ report 32% Net profit margin on sales. Last two years net profit margin was 16% How did net profits Double? STZ has a 3 year nonrenewable Supply agreement for supply Modello Beer below cost....STZ paid more for the Assets to get a 3 year supply agreement below cost....The Backside don't show up for 3 years so lets Party till it's 2017!
The Sands Brothers which control STZ had a net worth of about 800 million each in 2010 before negotiations
on the current Scheme took place ....you think that would be enough ....For certain People it's Never Enough
they always want more!
Castle Brands ( rox ) is a turnaround story of a growing beverage company about to turn a profit. Legendary billionaire investor Dr Phillip Frost and other insiders have been buying shares of ROX before the next earnings release.................................jmho
STZ made new yearly highs last week..Beam Inc is being acquired for $83.50 and is up $17.00 pre market..Castle Brands ( ROX ) is reporting earning Feb 13th and is predicted to report record earnings.
STZ reported earnings for 3Q 2014 last week STZ reported Selling General Administrative expense only 14% of Beer sales . Due to 3 year Supply agreement nonrenewable these costs are subsidized by Bud as a kickback for STZ 5,3 Billion purchase price. The short story is that this inflates STZ earnings in the short term and the profitability is a 1 time event confined to the 3 year subsidized supply agreement.