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Don't Drink & Drives: Molson Coors vs. Seagate Technology

These are our articles posted on Seeking Alpha. Click "READ MORE" if you would like to read the rest of the articles.

Molson Coors: Dimming Prospects And Over The Top Valuation

Summary

  • Molson Coors posted mediocre 1st quarter FY2016 core earnings for period ended 31 March 2016, and there is no turnaround in earnings in the near future.
  • The company’s business fundamentals are showing signs of cracking.
  • Selling this stock is the right strategy, as the stock is trading at all-time high valuations, which are not strongly backed by impressive future earnings growth.
  • Upcoming interest rate hikes will put pressure on the stock as breweries are regarded as similar to interest bearing bond instruments with stable free cash flow and regular dividends.

You may want to hold off on guzzling down some Molson Coors stock.

Molson Coors Brewing Company (NYSE:TAP), a North American brewing company and also the world's seventh largest brewer by volume, has seen its share price trending upwards since June 2012. Molson Coors, which boasts having a suite of popular top selling beer brands such as Coors and Coors Lite in the US, has seen its share price increasing from a low of around $39 in June 2012 to an all-time high of $98 per share in early May 2016... READ MORE



Seagate Technology: Buy It And Hold On

Summary

  • Fasten your seat belt – it could still be bumpy.
  • Earnings mirror the trend in PC sales.
  • Don’t hang your hat on that huge dividend.
  • The cloud is not ethereal.

If your investment horizon is three years or longer (and if it's not, you shouldn't be buying stocks anyway), you need to consider adding Seagate Technology (NASDAQ: STX) to your portfolio. Seagate is one of the world's largest manufacturers of hard drives used to store data in personal computers. This is the main reason the stock is out of favor. But I believe that STX will reward the patient investor who can tolerate a little volatility and ignore the noise surrounding the company.

Now, there's no question that the stock has been in a virtual free fall since January 2015, and technically it looks terrible. Take a look at the chart below. It isn't pretty. So, at least in the very short term, it looks as if the path of least resistance is to go lower... READ MORE

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