Don't Fear the Beer: Molson Coors' Best Days May Be on TAP

Governments and civilizations rise and fall, but beer is forever. That's why today I'm suggesting you sit back, relax, and take a look at what's on tap in the beer industry. My favorite stock here is Molson Coors, the aptly tickered TAP. From the company name alone, we are exposed to two behemoth brands in the brewing industry, Molson and Coors. But TAP has a whole lot more in its portfolio beyond just these two brands. Among the company's ever-growing and extremely impressive lineup of brews are Keystone, Amstel, Corona, Modelo, Killigans Irish Red and Blue Moon. The list goes on, but the point here is that Molson Coors has a highly diversified portfolio, and as a result is not at the mercy of all the swings and fads in consumer taste. Beyond the portfolio, the company has a pristine balance sheet, with its leverage ratio under 2x. It is the epitome of operational discipline – the company has enjoyed roughly $1 billion in cost savings since 2008. It generates nearly a billion a year in cash, and already has over $700M of cash on the books. This gives it an incredible amount of flexibility when it comes to making opportunistic acquisitions of new brands and portfolios. So when it comes to beer, Molson Coors tastes the best, and might be a great addition to your portfolio.