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Trade Picks: Inventory Levels Are Rising At These Beverage Stocks (Dec-18)

|Includes: BORN, CEDC, KOF, SodaStream International (SODA), TAP

Screen Criteria:

All of the Beverage companies mentioned below have reported rising inventory levels, when compared to quarterly revenue growth. (Link to original post)

Ranking of This List:

This list is currently ranked 105 out of 284 lists tracked by Contextuall.com, i.e. the company characteristics described below have outperformed 63.03% of lists in Contextuall's coverage universe.

Average Weekly Returns:

Average 1-Week Return of All Stocks Mentioned Below: 1.28%

Average 1-Month Return of All Stocks Mentioned Below: 4.32%

Analysis of List Alpha:

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Week): 2 out of 6 (33.33%)

Number of Stocks in This List Generating Excess Return vs. SP500 (Beta Adjusted Over Last Month): 3 out of 6 (50.0%)

(List sorted by monthly performance, from best to worst)

1. SodaStream International Ltd. (NASDAQ:SODA): Engages in the development, manufacture, and marketing of home beverage carbonation systems and related products. Size of inventory grew by 63.63% during the most recent quarter ($110.81M vs. $67.72M y/y), while revenue only increased by 48.67% ($112.48M vs. $75.66M y/y). Inventory, as a percentage of current assets, increased from 30.43% to 42.01% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

2. Coca-Cola FEMSA S.A.B de C.V. (NYSE:KOF): Produces, markets, and distributes Coca-Cola trademark beverages and brands. Size of inventory grew by 36.51% during the most recent quarter ($8,143M vs. $5,965M y/y), while revenue only increased by 20.33% ($36,193M vs. $30,077M y/y). Inventory, as a percentage of current assets, increased from 18.08% to 26.03% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

3. Molson Coors Brewing Company (NYSE:TAP): Distributes beer brands. Size of inventory grew by 32.17% during the most recent quarter ($265.8M vs. $201.1M y/y), while revenue only increased by 25.26% ($1,195.5M vs. $954.4M y/y). Inventory, as a percentage of current assets, increased from 10.07% to 14.93% during the most recent quarter (time interval comparison 13 weeks ending 2012-09-29 to 13 weeks ending 2011-09-24).

4. Brown-Forman Corporation (BF-B): Size of inventory grew by 14.83% during the most recent quarter ($797.5M vs. $694.5M y/y), while revenue only increased by 0.01% ($1,013.8M vs. $1,013.7M y/y). Inventory, as a percentage of current assets, increased from 35.7% to 38.81% during the most recent quarter (time interval comparison 3 months ending 2012-10-31 to 3 months ending 2011-10-31).

5. Central European Distribution Corp. (NASDAQ:CEDC): Produces, imports, and distributes alcoholic beverages in Poland, Hungary, and the Russian Federation. Size of inventory grew by 31.80% during the most recent quarter ($160.06M vs. $121.44M y/y), while revenue only increased by -8.73% ($191.33M vs. $209.64M y/y). Inventory, as a percentage of current assets, increased from 21.54% to 27.96% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).

6. China New Borun Corporation (NYSE:BORN): Produces and distributes corn-based edible alcohol in the People's Republic of China. Size of inventory grew by 110.0% during the most recent quarter ($315.07M vs. $150.03M y/y), while revenue only increased by -10.82% ($559.16M vs. $627.01M y/y). Inventory, as a percentage of current assets, increased from 19.56% to 35.62% during the most recent quarter (time interval comparison 3 months ending 2012-09-30 to 3 months ending 2011-09-30).