Hedgeye CEO Keith McCullough is adding Constellation Brands (STZ) to the long side of Investing Ideas. Below is a brief note.
Pretty slow volume day with the VIX < 26 and VXN < 33 is bullish for Tech Beta, until it isn't (Tech is a long in #Quad3).
In the meantime, we keep getting names that we like at the low-end of their respective Risk Ranges for whatever reason doesn't really matter to me!
On buying Constellation Brands (STZ) on sale -2% today, here's a summary excerpt from Consumables Team (Penney and Biolsi) on why we still like the name, fundamentally, here:
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"The combination of current depletion trends continuing to be healthy and affirmation of Mexican production resuming in June was well received by investors. The upside to margins was a positive surprise, but the marketing spend for beer was just delayed to when the investment is better spent. We continue to see Constellation Brands outperforming from here as shipments resume and the many concerns that were an overhang on the stock a couple of months ago continuing to recede." |
Buy the damn dip,
KM