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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Sell In May Go Away Drink Beer 0 comments
    May 2, 2011 9:25 AM | about stocks: TAP, BUD, HEINY

    Sell In May Go Away Drink Beer

    Its “sell in May and go away” cliché time. This week its sell this stock, go away and drink some of their beer, because I’ve got a short sell on Molson Coors Brewing. Last year the market did sell off quite significantly during May, then only to rebound quite nicely to the upside again starting in June 2011. Will there repeat of last year? We’ll soon see. Place your bets.

    According to Zacks Investment Research, Molson Coors Brewing Co. Ticker TAP now produces and markets Molson Canadian 67 Sublime, a premium light beer with citrus flavor, containing not more than 67 calories in each 341ml bottle. It has 3% alcohol.

    The beer is now on the shelves at select retailers and establishments across Western Canada and Ontario. It will be available in the national markets from June 2011.

    This beer is another addition to an innovative low-calorie beer category. Management at Molson Coors claims that the new brand offers “health and wellness” along with innovative flavors to make it interesting.

    The launch of Molson Canadian 67 Sublime is a part of revamping program taken up by Molson Coors to hold back the decrease in volume in the premium and value categories. For each of the five years ended December 31, 2008, Canada beer industry shipments' annual average growth rate approximated 1%. While in 2009 and 2010, Canada beer industry shipments declined at a rate of less than 1%.

    Sublime is one of the several new products created under the Molson label to cater to shifting consumer tastes in Canada, where drinkers are ordering more specialty beers or wine.

    Molson Coors Canada is the second largest brewer by volume and North America's oldest beer company. It approximately has a 40% market share in Canada. It brews, markets, sells and distributes a wide variety of beers nationally. Its portfolio has leading brands in all major product and price segments.

    The key owned brands of Molson Coors Canada include Coors Light, Molson Canadian, Molson Dry, Molson Export, Rickard's, Creemore Springs and Granville Island and key strategic distribution partnerships, including those with Heineken, Modelo and SABMiller. Coors Light currently has a 14% market share and is the top selling beer brand in Canada and Molson Canadian currently has an 8% market share and is the third largest selling beer in Canada.

    Since 2001, the premium beer category in Canada has gradually lost volume to the above premium and value categories. For each of the five years ended December 31, 2008, Canada beer industry shipments annual average growth rate approximated 1%. While in 2009 and 2010, Canada beer industry shipments declined at a rate less than 1%.

    Molson Coors faces stiff competition from Anheuser-Busch – Ticker BUD and maintains a Zacks #4 Rank, which translates into a short-term Sell rating.

    Sell Short Molson Coors Brewing – Ticker TAP

    Sell Entry: 49.62 to 51.27

    Stop-Loss: 55.37

    Take Profit Areas: 42.77 to 42.06, 41.13 to 40.43, 35.87 to 35.25

    Company Profile

    Molson Coors Brewing Company brews, markets, sells, and distributes beer brands. The company sells its products in Canada, under the brand names of Coors Light, Canadian, Export, Molson Canadian 67, Molson Dry, Molson M, Creemore, Rickard's Red, Carling, and Pilsner. It also brews or distributes products under license from third parties, which include Amstel Light, Heineken, Murphy's, Asahi, Asahi Select, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, Milwaukee's Best Dry, and Foster's. In addition, the company imports, distributes, and markets the Corona, Coronita, Negra Modelo, and Pacifico brands, through a joint venture agreement with Grupo Modelo. Further, it sells various brands in the United States, which include Coors Light, Miller Lite, Coors Banquet, Miller Genuine Draft, MGD 64, Miller Chill, Sparks, Miller High Life, Miller High Life Light, Keystone Light, Icehouse, Mickey's, Milwaukee's Best, Milwaukee's Best Light, Old English 800, Henry Weinhard's, George Killian's Irish Red, Leinenkugel's, Molson, Foster's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Coors Non-Alcoholic, Sharp's, and Blue Moon. Additionally, the company sells various brands in the United Kingdom, which comprise Carling, C2, Coors Light, Worthington's, White Shield, Caffrey's, Kasteel Cru, and Blue Moon. It also distributes the Sol, Dos Equis, Zatec, Singha, and Magners Draught Cider brands. In addition, the company has joint venture agreements with Royal Grolsch N.V. for the provision of the Grolsch brands; and Cobra Beer Partnership Ltd. for the provision of Cobra brands in the United Kingdom. It markets and sells Zima, Coors Gold, and Coors Extra brands in the international markets. The company was formerly known as Adolph Coors Company and changed its name to Molson Coors Brewing Company as a result of its merger with Molson Inc. in February 2005. Molson Coors Brewing Company was founded in 1873 and is headquartered in Denver, Colorado.

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    Click the MolsonCoors stock chart below for a larger view.

    Stock Chart Molson Coors
    Stocks: TAP, BUD, HEINY
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