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CEDC, STZ, KNBWY, BUD, ABV, Beverages - Alcoholic Stocks 22.96% undervalued

^{Published on 2011-01-26 12:34:33 - WOPRAI}
 

January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Beverages - Alcoholic sector and these stocks are the most undervalued as of today. CENTRAL EURO DISTRIBUTION CP (NASDAQ:CEDC), CONSTELLATION BRANDS INC-A (NYSE:STZ), KIRIN HOLDINGS CO-SPON ADR (OTC:KNBWY), ANHEUSER-BUSCH INBEV SPN ADR (NYSE:BUD), COMPANHIA DE BEBIDAS-PRF ADR (NYSE:ABV) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     CEDC       CENTRAL EURO DISTRIBUTION CP        24.86          32.27          22.96% undervalued          Beverages - Alcoholic  
     STZ        CONSTELLATION BRANDS INC-A          18.92          19.56          3.25% undervalued           Beverages - Alcoholic  
     KNBWY      KIRIN HOLDINGS CO-SPON ADR          13.54          14.31          5.37% undervalued           Beverages - Alcoholic  
     BUD        ANHEUSER-BUSCH INBEV SPN ADR        57.54          58.09          0.94% undervalued           Beverages - Alcoholic  
     ABV        COMPANHIA DE BEBIDAS-PRF ADR        27.78          111.12         75.00% undervalued          Beverages - Alcoholic  

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

CENTRAL EURO DISTRIBUTION CP (NASDAQ:CEDC) - Central European Distribution Corporation (CEDC) and its subsidiaries produce, distribute, import, and export alcoholic beverages primarily in Poland, Hungary, and the Russian Federation. The company produces vodka with a brand portfolio that includes Absolwent, Zubrwka, Bols, Palace, Soplica, Green Mark, Parliament, Zhuravli, and Royal brands. It distributes approximately 700 brands of alcoholic beverages consisting of various alcoholic products, including spirits, wines, and beers, as well as non-alcoholic beverages. The company distributes its products directly to off-trade establishments, such as small and medium-size retail outlets, petrol stations, duty free stores, supermarkets, and hypermarkets; and on-trade locations, including bars, nightclubs, hotels, and restaurants. As of December 31, 2009, CEDC operated 18 distribution centers and 124 satellite branches located throughout Poland. It imports spirits, wines, and beers of various brands, including Jim Beam Bourbon, Campari, Jagermeister, Remy Martin Cognac, Guinness, Corona, Budvar, E&J Gallo wines, Carlo Rossi wines, Sutter Home wines, Metaxa Brandy, Sierra Tequila, Teachers Whisky, Cinzano, Old Smuggler, Grants Whisky, and Concha y Toro wines. CEDC exports its products principally to the United States, Japan, the United Kingdom, and France. The company was founded in 1990 and is based Bala Cynwyd, Pennsylvania.

CONSTELLATION BRANDS INC-A (NYSE:STZ) - Constellation Brands, Inc., together with its subsidiaries, engages in the production and marketing of beverage alcohol brands in wine, spirits, and imported beer categories. The company operates through Constellation Wines and Crown Imports divisions. The Constellation Wines division produces table wines, sparkling wines, and dessert wines. It offers wine under the brand names of Robert Mondavi Brands, Franciscan Estate, Wild Horse, Simi, Toasted Head, Estancia, Clos du Bois, Blackstone, Ravenswood, Black Box, Vendange, Arbor Mist, Inniskillin, Kim Crawford, Ruffino, Nobilo, Jackson-Triggs, Alice White, Hardys, Banrock Station, Stowells, and Kumala, as well as provides brandy/cognac product under Paul Masson Grande Amber Brandy brand name. This division also produces spirits, wine kits, beverage alcohol refreshment drinks, and other related products and services, as well as distributes wine, distilled spirits, cider, beer, RTDs, and soft drinks. The Crown Imports division imports, markets, and sells Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, St. Pauli Girl, and Tsingtao imported beer brands in the United States. The company distributes its products through wholesale distributors, and state and provincial alcoholic beverage control agencies; and directly to off-premise accounts, such as retail chains and on-premise accounts, including pubs, clubs, hotels, restaurants, and wholesalers. It sells its products principally in the United States, Canada, the United Kingdom, Australia, and New Zealand. Constellation Brands, Inc. was founded in 1945 and is headquartered in Victor, New York.

KIRIN HOLDINGS CO-SPON ADR (OTC:KNBWY) - Kirin Holdings Company, Limited engages in the manufacture and sale of food and beverage products primarily in Japan, Asia, Oceania, the United States, and Europe. The company operates in four segments: Alcohol Beverages, Soft Drinks and Foods, Pharmaceuticals, and Other Businesses. The Alcohol Beverages segment offers beer, happo-shu, genre beverages, chu-hi drinks, shochu, whiskey, Chinese liqueurs, malt, and other spirits. This segment also involves in the development, manufacture, and sale of systems to bottling, pharmaceutical, automobile, and other industries. The Soft Drinks and Foods segment offers a series of tea and coffee drinks, dairy foods, seasonings and food additives, and health food ingredients. This segment also engages in the manufacture and sale of coca-cola products, other soft drinks, ketchup, tomato juices, dairy foods, seasonings and food additives, sake, and health food ingredients. The Pharmaceuticals segment involves in the research, development, manufacture, and sale of various pharmaceutical products, such as G-CSF, Aranesp, Busulfex, Renagel, and EPO products. The Other Businesses segment engages in the manufacture and sale of chemical and bio-chemical products; sale of carnations, chrysanthemums, roses, petunias and related products, potato varieties, seeds, and vegetables; management and real estate brokerage of leased offices, company housing, and welfare facilities; and management of membership tennis club. This segment also involves in the management of commercial premises in landmark brick building; processing and sale of by-products feed; and management of beer pubs and hotels, as well as operates as an insurance sales agent. The company was formerly known as Kirin Brewery Company, Limited and changed its name to Kirin Holdings Company, Limited in July 2007. The company was founded in 1907 and is headquartered in Tokyo, Japan.

ANHEUSER-BUSCH INBEV SPN ADR (NYSE:BUD) - Anheuser-Busch InBev NV/SA, together with its subsidiaries, engages in brewing and selling beer in North America, Latin America, Europe, and the Asia Pacific. It manages a portfolio of approximately 200 brands that primarily includes Budweiser, Stella Artois, Becks, Leffe, Hoegaarden, Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, and Jupiler. Anheuser-Busch also engages in the manufacture and sale of soft drinks. The company was founded in 1366 and is headquartered in Leuven, Belgium.

COMPANHIA DE BEBIDAS-PRF ADR (NYSE:ABV) - Companhia de Bebidas das Americas AmBev engages in the production, distribution, and sale of beer, draft beer, malt, carbonated soft drinks, and other non-alcoholic and non-carbonated products in the Americas. It also sells bottled water, isotonics, and ready-to-drink teas. The company primarily offers its products under the Skol, Brahma, and Antarctica brand names. Companhia de Bebidas das Americas has a licensing agreement with Anheuser-Busch, Inc. to produce, bottle, sell, and distribute Budweiser products in Canada. It distributes its products through third-party distributors and direct distribution centers. The company was founded in 1888 and is headquartered in Sao Paulo, Brazil. Companhia de Bebidas das Americas AmBev is a subsidiary of Interbrew International B.V.

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