Brown Forman (BFB )
produces and markets Jack Daniel’s, Southern Comfort, Finlandia, Canadian
Mist, and Korbel. The company has earned a 20-25%+ return on
equity and grown profits and dividends between 9% and 10% over the past 10
years. Historically, BFB
has managed to increase earnings per share through even the toughest economic
period and should continue to do so as a result of:
(1) the
competitive advantage offered by its strong portfolio of brands,
(2) geographic
expansion into developed [France ]
as well as emerging [Russia ,
Poland , Mexico ]
markets,
(3) broadening
of its Jack Daniels product offerings [Gentleman Jack, Jack Daniels Single
Barrel],
(4) a stock buy
back program.
Negatives:
(1) its products
are sensitive to economic developments,
(2) a highly
competitive industry,
(3) distilled
spirits are subject to excise taxes in various countries; increases can have an
adverse effect on the company’s financial results.
Brown Forman is
rated A+ by Value Line, has a 40% debt to equity ratio and its stock yields 1.5%
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio
Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
Chart
Note:
BF.B stock made great progress off its March 2009 low, quickly surpassing the
downtrend off its August 2008 high (red line) and the November 2008 trading
high (green line), Long term, BF.B is in
an uptrend (straight blue lines).
Intermediate term, it is in an uptrend (purple lines). It recently broke its short term uptrend
(brown lines). The wiggly blue line is
on balance volume. The Dividend Growth
Portfolio owns a 50% in BF.B by virtue of the stock having traded into its Sell
Half Range Buy Value
Range Sell Half
Range
6/13
No comments:
Post a Comment