Cramer also had a pick about red wine saving lives, although resveratrol (the chemical in red wine) is the chemical that does it. He said Constellation Brands (STZ) is the real red wine play left in the US because Constellation has been able to push through price hikes of the top nine brands. The stock hasn’t moved one lick since the good publicity has been out there. It closed at $27.80 in early November and right now it is giving you a gift as it closed at $27.51 today. He thinks the analysts must be thinking there is prohibition because the analysts are prohibited from doing certain things. The company lowered down to 13-15% growth down to in-line with the analysts. Laws discourage companies from pumping this too much, and Cramer says this is a great opportunity even though it floats under the radar and thinks it will blow away estimates quarter after quarter.
STZ 52-week trading range is $22.56 to $29.09 and traded up to $28.05 after Cramer touted it. OK, he convinced me….so I think I will go have some red wine.
Jon C. Ogg
November 27, 2006