We are moving shares of Molson Coors Beverage Company (TAP) from Buy to Sell. The shares are approaching our 69 price target, with only about 4% upside remaining. This is close enough, given that much of the run-up is being driven by Budweiser’s Bud Light marketing blunder in the United States. Sales of Bud Light have slumped as much as 25%, while sales of Coors, Miller and others have jumped. It’s not clear how long this phenomenon will last, but the share valuation is becoming relatively full. We are reluctant to raise our price target from here. Shares of Molson Coors have produced about a 29% total return since our initial recommendation.
Shares of ESAB Corporation (ESAB) are approaching our 68 price target, so we are reviewing our rating and price target.
The next earnings report is by Walgreens Boots Alliance (WBA), scheduled for June 27.
Friday, June 9, 2023 Subscribers-Only Podcast:
Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.
Today’s podcast is just under 7 minutes and covers:
- Comments on recommended companies
- WarnerBros Discovery (WBD) – firing of CNN chief boosts stock price.
- Vodafone (VOD) – dividend cut likely.
- Walgreens Boots Alliance (WBA) – sold rest of Option Care Health shares.
- Volkswagen AG (VWAGY) – finally focusing on attractive U.S. car market.
- Elsewhere in the markets
- Market tilted too far toward mega-cap tech? Time to buy value.
| Market Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | 6/8/23 | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | 2.00 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | 6.40 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | 25.68 | - | Buy (44) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | 18.67 | - | Buy (38) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | 37.38 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | 15.15 | 6.6% | Buy (33) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | 9.52 | 5.0% | Buy (26) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | 48.98 | - | Buy (60) |
| Mid cap | Kaman Corporation | KAMN | Nov 2021 | 37.41 | 23.48 | 3.4% | Buy (57) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | 11.78 | 8.0% | Buy (25) |
| Mid cap | Brookfield Re | BNRE | Jan 2022 | 61.32 | 31.88 | 1.8% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | 117.79 | - | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | 13.32 | - | Buy (24.50) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | 28.07 | 5.6% | Buy (67) |
| Mid cap | ESAB Corp | ESAB | Jul 2022 | 45.64 | 64.86 | 1.5% | Buy (68) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | 27.29 | - | Buy (35) |
| Mid cap | Kohl’s Corporation | KSS | Mar 2023 | 32.43 | 22.06 | 9.1% | Buy (50) |
| Mid cap | First Horizon Corp | FHN | Apr 2023 | 16.76 | 11.71 | 5.1% | Buy (24) |
| Mid cap | Frontier Group Holdings | ULCC | Apr 2023 | 9.49 | 9.18 | - | Buy (15) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | 106.07 | 0.3% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | 3.99 | 2.3% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | 16.02 | 4.1% | Buy (25) |
| Large cap | Toshiba Corporation | TOSYY | Nov 2017 | 14.49 | 16.29 | 6.4% | Buy (28) |
| Large cap | Holcim Ltd. | HCMLY | Apr 2018 | 10.92 | 12.97 | 3.4% | Buy (16) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | 8.63 | 3.2% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | 9.29 | 11.0% | Buy (32) |
| Large cap | Molson Coors | TAP | Jul 2019 | 54.96 | 66.40 | 2.3% | SELL |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | 335.95 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | 42.37 | 2.8% | Buy (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | 40.10 | - | Buy (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | 9.35 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | 31.85 | 6.0% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | 16.68 | 5.5% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | 14.02 | - | Buy (20) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | 111.63 | 2.1% | Buy (150) |
| Large cap | Bayer AG | BAYRY | Feb 2023 | 15.41 | 13.97 | 3.9% | Buy (24) |
| Large cap | Tyson Foods | TSN | Jun 2023 | 52.01 | 50.86 | 3.8% | Buy (78) |
Disclosure: The chief analyst of the Cabot Turnaround Letter personally holds shares of every Rated recommendation. The chief analyst may purchase securities discussed in the “Purchase Recommendation” section or sell securities discussed in the “Sell Recommendation” section but not before the fourth day after the recommendation has been emailed to subscribers. However, the chief analyst may purchase or sell securities mentioned in other parts of the Cabot Turnaround Letter at any time. Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at bruce@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.
