Molson Coors Brewing Company (TAP) expands internationally and into the craft beer segment, and this leading beverage company recently traded down to 10 to 11 times 2013 earnings in the last quarter of 2012, leading J. Jeffrey Auxier, President and CEO at Auxier Asset Management, LLC, to include it in his value investment portfolio of misunderstood businesses.
“Right now, many of their markets are suffering from recession. [TAP‘s] customers are out of work, there was a difficult National Hockey League strike. But five years from now, if the business can achieve just a 15 times multiple, this seemingly dull company could provide exciting returns,” Auxier said.
Auxier buys during periods of turmoil, when many investors are selling rather than buying. He previously studied the investment practices of well-known investors Warren Buffett and Carlos Slim, and he says he will buy and wait for his stocks to appreciate rather than chase momentum.
“We want to take advantage of the market when it’s offering compelling bargains. We typically come alive when the market is pessimistic. Most people are worried during a recession, but we turn it upside down and say, ‘time to shop,’” Auxier said. “We would rather get in early for the double or triple play.”
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