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This past weekend's Saint Patrick's Day celebrations were a good thing for
Molson Coors Brewing(TAP - Get Report), the $8.7 billion mega-brewer. Molson Coors is one of the big three multinational beer brewers, positioning that gives the firm some big advantages over smaller rivals. The firm owns brands like eponymous Molson and Coors as well as Blue Moon, Keystone and Miller Lite (the latter through a joint venture with
SABMiller(SBMRY) here in the U.S.).
The relationship between Miller and Coors looks tenuous right now. The joint venture is threatening a breakup in its Canadian operations (the U.S. business is safe), that's been forming a black cloud over shares in the weeks since it was announced. Despite the tug of war between the two partners, TAP owns a valuable portfolio of offerings and carries an enviable market share abroad. Entrance into the fast-growing craft beer segment is a big opportunity for TAP, which has seen stagnating growth as consumers develop more refined beer palates.
A surging dollar has been a real problem for TAP: The firm's international units got hit with reduced revenues and with currency exchange losses on its international business. That currency risk is going to continue to be a threat in this environment, but it's one that investors can take advantage of to buy TAP on the cheap -- especially if the dollar sees a change in its primary trend. We're betting on shares this week.
To see all of this week's Rocket Stocks in action, check out
the Rocket Stocks portfolio at Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.