Topic: How To Invest

The Successful Investor Hotline – Friday, June 21, 2024

Article Excerpt

ANDREW PELLER LTD. (class A shares) remains a buy for long-term gains. The company, Toronto symbols ADW.A (non-voting) $3.79 and ADW.B $5.05, is Canada’s second-largest wine producer, after Arterra Wines. In its fiscal 2024 fourth quarter, ended March 31, 2024, Peller’s sales rose 9.4%, to $85.01 million from $77.71 million a year earlier. That topped the consensus forecast of $84.7 million. The higher sales are largely because Peller received $5.8 million from the Ontario government. That grant is part of the province’s plan to support the wine industry as it opens up the market for alcoholic beverages to include more retail outlets, such as supermarkets and convenience stores. The company lost $6.94 million, or $0.17 a share, in the quarter, partly due to a $1.0 million unrealized loss on contracts it uses to hedge its interest rate and foreign currency exposure. That beat the consensus estimate of a $0.15-a-share loss. A year earlier, Peller lost $10.01 million, or $0.24 a share. That loss included a..