Bob Kargenian’s Letter Published in Barron’s on January 16

Bob Kargenian’s letter was published on January 16 in Barron’s, a weekly newspaper that covers financial information, relevant statistics, and market developments.

In his letter, Bob says, “Jack Hough offered up four theories for the struggles of Constellation Brands, but didn’t mention that the management team has possibly run out of fortunate bounces (‘Are ICE Raids Hurting Corona Sales? Constellation Brands Investors Are Wondering Aloud,’ Streetwise, Jan. 9). In 2018, Constellation invested $4 billion in Canadian cannabis maker Canopy Growth, then added to the investment in 2020. That decision has cost Constellation’s balance sheet dearly. It might not be the reason for the stock’s performance in the past 12 months, but Constellation needs to stick to what it knows.”

Read Bob Kargenian’s Full Letter (login required).