09 January Watchlist 👀

by 9 Jan, 2020

Today we are watching…

1. Constellation Brands (#constb)

The brewers of Corona beer hold a steadfast belief in their recent cannabis investments, unlike many other stock pickers who’ve had their fingers burnt by the bong biz. Investors raised eyebrows yesterday as Constellation Brands took an L in its earnings release thanks to a floundering bet on weed start-up, Canopy Growth. However, keen to eventually bring cannabis-infused beverages to market following a four-billion-dollar commitment to the Canadian firm, executives have no choice but to say they’re “bullish.” Aside from agonizing over Canopy Growth’s share price, though, Constellation is planning to launch a new hard seltzer in 2021. More details to follow!

2. Bed Bath & Beyond (#bedbath)

It’s official. Bed Bath & Beyond is the worst retailer on the planet, and possibly beyond! Structurally unprofitable thanks to an excess of non-expiring, 20% off coupons which rip into its margins, customers won’t shop at Bed Bath unless they do indeed have these coupons! It’s a catch-22. That’s the view held by investors who lost last night lost 15% after Bed Bath missed earnings, closing forty stores in the process. But it’s never over until it’s over. The home furnishings business is plotting a sensational comeback under Mark Tritton, a former Target executive, but a famous saying is playing investors’ minds right now. “When a CEO with a reputation for brilliance tackles a business with a reputation for bad economics, it’s usually the reputation of the business which stays intact.” That’s one of Warren Buffett’s. Gulp!

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