Constellation Brands (NYSE: STZ) produces and markets more than 250 brands of wine, spirits and beer, in about 150 countries. The Wines division, the largest maker of wine by volume in the world, is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Tsingtao, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.

The company pleased investors earlier in the week, when it reported fiscal Q1 EPS of 34 cents and revenues of $931.8 million. Analysts had been looking for 31 cents and $906.1 million. The highlight of the quarter was a 24% year over year rise in branded wine net sales. Management also guided FY09 EPS to $1.68-$1.76, versus consensus of $1.70.

The bulls got to lead the first day of the quarter, although we would note that if today was the norm that trading volatility isn't slowing down regardless of the direction. Oil rose again toward session highs on tensions and the usual myriad of reasons we cite for oil rising (yes, it's that routine). Here are today's unofficial closing levels:

• DJIA 11,381.77 (+31.51)
• S&P500 1284.89 (+4.89)
• NASDAQ 2304.97 (+11.99)
• 10YR T-Note 3.992% (+0.013%)
• 52-WEEK LOWS

We actually saw many financial sector upgrades from research firms today, which sent many of the corresponding shares higher in what feels like a "for once" statement. We would caution that later in the day an analyst report did note other banks would need more capital (again).

Shares of wine and liquor company Constellation Brands Inc. (NYSE: STZ) have been soaring in early trading despite posting a loss in its fourth-quarter. The results, though, beat analysts' estimates.

For the quarter, Constellation Brands said that it swung to a loss of $831.9 million, or $3.90 per share, hurt by a considerable charge related to its Australia and U.K. businesses. Included in the company's numbers was an impairment charge of $807.1 million. Excluding that, the world's biggest winemaker's earnings would have been 34 cents per share. Analysts, on average, were expecting earnings of 25 cents per share for the quarter.

Constellation did post a decline in its fourth-quarter revenue, which slipped 23% to $884.4, down from $1.14 billion a year earlier. The drop in revenue came as the company had to face lower wine sales amid a weak consumer environment. However, Constellation Brands was able to beat analysts' predictions for quarterly revenue of $877.4 million, according to Thomson Financial.

The winemaker had a pretty difficult second half in 2007, as it had to face continued fears over a possible recession. The slumping housing market and credit crises brought a slowdown in consumer spending whose effects were reflected in the company's earnings. Regardless, Constellation Brands' positive earnings figures seem to be enough to enthuse investors and pull the shares up over 2.8% in early trading.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

Monday, March 31

• InterOil Corporation (AMEX: IOC) to report quarterly earnings; conference call at 8:30am.
• Fed Reserve San Fransisco Bank President Janet Yellen to speak about foreclosures at 12:00pm.

Tuesday, April 1

• Happy April Fools Day, watch out for pranks!
• A-Power Energy Generation Systems (NASDAQ: APWR) to report quarterly earnings; conference call at 9:00am.
• Ford Motor Company (NYSE: F) and General Motors Corporation (NYSE: GM) to report monthly sales, Ford at 1:00pm, GM at 2:00pm.

MOST NOTEWORTHY: Cognos, MSC Industrial Direct, Fastenal Company, Royal Kpn and Koppers Holdings were today's noteworthy downgrades:

• Cognos (NASDAQ: COGN) was downgraded to Neutral from Buy at Goldman and at Broadpoint following the acquisition by IBM (NYSE: IBM).
  
• Baird downgraded MSC Industrial Direct (NYSE: MSM) and Fastenal Company (NASDAQ: FAST) to Neutral from Outperform, as they expect the difficult U.S. manufacturing environment to constrain shares.
  
• Credit Suisse lowered its rating on Royal Kpn (NYSE: KPN) to Neutral from Outperform based on Getronics integration risk and slowing mobile earnings momentum.
  
• Koppers Holdings (NYSE: KOP) was downgraded to Buy from Aggressive Buy at KeyBanc based on valuation and concerns on 1H08 comps.

OTHER DOWNGRADES:

• Goldman removed Foster Wheeler (NASDAQ: FWLT) from its Conviction Buy List.
  
• Gabelli downgraded shares of Constellation Brands (NYSE: STZ) to Sell from Buy.
  
• Stifel lowered its rating on Amerigroup (NYSE: AGP) to Hold from Buy.

Monday October 1

* Beijing Med-Pharm Corporation (NASDAQ: BJGP) to hold a conference on the acquisition with Sunstone Pharma at 9am.

Tuesday October 2

* Ford Motor Company (NYSE: F) to report monthly sales at 1pm, General Motors Corporation (NYSE: GM) to report monthly sales at 2pm.
* PDUFA date for Biovail Corporation (NYSE: BVF)/Depomed Inc (NASDAQ: DEPO)/King Pharmaceutical Inc's (NYSE: KG) Glumetza for glycemic control in diabetic adults.

Wednesday October 3

* Threshold Pharmaceuticals (NASDAQ: THLD) to discuss Glufosfamide results from Phase III Clinical Trial at 4:30pm.

Thursday October 4

* Constellation Brands (NYSE: STZ) to report Q2 earnings; conference call at 10am.
* Lawson Software (NASDAQ: LWSN) to report Q1 earnings; conference call at 4:30pm.
* Research In Motion (NASDAQ: RIMM) to report Q2 earnings; conference call at 5pm.

Friday October 5

* PDUFA date for Bristol Myers Squibb's (NYSE: BMY) Abilify for the treatment of schizophrenia and manic episodes associated with Bipolar I Disorder.

If your Final Jeopardy question read "What U.S. state is home to the biggest wine producer in the world?", would you answer California? You'd be wrong. It's New York! In fact, the Fairport, N.Y. firm in question sells more than 250 brands of flavored ethanol.

Constellation Brands (NYSE: STZ) produces and markets wine, spirits and beer. The Wines division is responsible for such brands as Robert Mondavi, Inniskillin, Simi, Arbor Mist and Blackthorn (cider). The Spirits division distills such brands as Black Velvet, Chi-Chi's, Fleischmann's, Canadian LTD and Mr. Boston. The Imports division has the right to import, market, and sell Corona Extra, Corona Light, Modelo Especial, Pacifico and St. Pauli Girl. The firm distributes its products through wholesalers, government beverage control agencies and various retailers in some 150 countries. Diageo (NYSE: DEO) and Fortune Brands (NYSE: FO) are major competitors.

The company pleased investors late last month, when it reported solid Q1 results and guided FY08 EPS in-line with the average Street estimate. The CEO announced an acquisition strategy focused on European expansion, premium spirits and niche wines. Banc of America Securities subsequently reiterated its "buy" rating on the issue and boosted its price target to $27. The news kept STZ shares cycling through a positive 10-week trading channel. The price is currently moving near the base of that channel, where oversold CCI, Stochastic and Momentum technical parameters suggest the potential for a rise back toward the top.

Altogether, brokers recommend the issue with two "strong buys," one "buy," eleven "holds" and one "sell." Analysts see a 22% growth rate through the next year. The STZ P/E ratio (20.60), Price to Sales ratio (1.02), Price to Book ratio (1.73) and Price to Cash Flow ratio (11.93) compare favorably with industry, sector and S&P 500 averages. Institutions own about 84% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $18.83 and $29.17. A stop-loss of $20.50 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the vice president of Stockwinners.com.

Jim Cramer featured another SELL BLOCK on CNBC tonight. This is where he reviews some of his past buy stocks and says to take profits or apologizes for being wrong. Tonight wasn't a normal SELL BLOCK: He says to keep some and only take some money off the table.

Cramer's first stock was Goldman Sachs Group (NYSE:GS), and he's made a lot on it. Even though he is way up and close to his first target of $225 (it is now at $213), he said he is NOT SELLING. Earlier today he noted $300 as the target. He thinks the $15 per share earnings is too low and it could hit $25 per share this year.

On Blockbuster Inc. (NYSE:BBI), which is up 48%, and Rite-Aid (NYSE:RAD), which is up 45% from his original picks, Cramer said you can sell some but not all. BBI was part of his favorite speculative stocks for 2007.

eBay Inc. (NASDAQ:EBAY) is up big since his December recommendation and he's scared to do fresh money and take part of it off the table.

He wants to eat crow over Constellation Brands (NYSE:STZ) after it was his call at $27 because of red wine; he says it's a Triple Sell because he got it so wrong. Here is what he said in November about it; it seemed odd for a Cramer pick.

Jon Ogg is a partner in 24/7 Wall St., LLC; he does not own securities in the companies he covers.

MOST NOTEWORTHY: International Business Machines Corp (IBM) and General Dynanics (GD) were the most notable upgrades this morning:

• UBS upgraded International Business Machines Corp (NYSE: IBM) to Buy from Neutral with a $118 target, citing improving fundamentals and expectations that software acquisitions will contribute to expanding organic growth rates, increased margins and multiple expansions.

• General Dynamics (NYSE: GD) was upgraded to Outperform from Neutral at Cowen, as the firm sees better-than-expected growth for General Dynamics Combat business, driven by the DoD's 2007 supplemental budget.

OTHER UPGRADES:

• Bear Stearns upgraded shares of TiVO Inc (NASDAQ: TIVO) to Peer Perform from Underperform, as the company believes risk/reward is now more favorable.

• Bernstein upgraded shares of Constellation Brands (NYSE: STZ) to Market Perform from Underperform citing valuation.

• Goldman Sachs added Royal Caribbean Cruises (NYSE: RCL) to their America's Conviction Buy List, beliving that RCL's overhang from higher energy expenses is abating and that pricing trends may be slightly better than expectations.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).