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Molson Coors Still Expensive, Downside To $60 Still In Play

A few months ago I took a look at large brewer Molson Coors (TAP) at a valuation level and decided the stock was expensive. At the time, shares were trading for $77 and I posited that downside to the $60 area was possible. My reasoning was that TAP has come very far, very quickly and that earnings simply have not kept pace with increases in the stock price. That presents a fundamental problem because there are only two ways to rectify such a situation; either earnings come up or the stock comes down. In this article, I'll take a fresh look at TAP to see what has happened since my last look and what I expect will happen now.

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We can see that since my last article was published in November the stock has virtually traded sideways. Shares are now about one dollar higher than where I… Read More …