BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Vice stocks not as recession-proof as they used to be]]>http://www.bloggingstocks.com/2009/01/05/vice-stocks-not-as-recession-proof-as-they-used-to-be/http://www.bloggingstocks.com/2009/01/05/vice-stocks-not-as-recession-proof-as-they-used-to-be/http://www.bloggingstocks.com/2009/01/05/vice-stocks-not-as-recession-proof-as-they-used-to-be/#commentsFiled under: ,

Historically, so-called "sin stocks" have held up exceptionally well in bear markets. Demand for alcohol, sex, gambling, cigarettes and firearms tends not to ebb and flow as much as the broader economy.

Historically. But over the past year, the USA Mutuals Vice Fund (VICEX) is off about 42% -- slightly worse than the S&P 500. The fund's manager Charles Norton told BusinessWeek that while casinos have been weak, many of the firm's other vice-oriented holdings have been beaten down unfairly: "The fundamentals don't really matter in this current market."

That would certainly seem to be the case so far: When the market's down 42%, any long-only fund will be getting its stuff handed to it. With Las Vegas at the epicenter of the foreclosure mess, it's not surprising that heavily leveraged casino companies are underperfoming. And casinos are not really as recession-proof as other forms of gambling because the upscale ones especially are as much about tourism as gambling. The more affordable state lotteries have seen their sales decline but not by that much.

As for sin stocks, it might be too late for investors to start buying them: If the stock market is poised to rebound, recession-resistant companies will tend to be the laggards.

But if the stock market goes down another 40% in 2009, it'd probably be good for investors to stock up on Jack Daniels: the drink, not the stock.

Vice stocks not as recession-proof as they used to be originally appeared on BloggingStocks on Mon, 05 Jan 2009 14:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>inthenewsRecessionVice StocksViceStocksVICEXMon, 05 Jan 2009 14:45:00 EST<![CDATA[Diageo (DEO) is the toast of the town... on four continents]]>http://www.bloggingstocks.com/2007/12/26/diageo-deo-is-the-toast-of-the-town-on-four-continents/http://www.bloggingstocks.com/2007/12/26/diageo-deo-is-the-toast-of-the-town-on-four-continents/http://www.bloggingstocks.com/2007/12/26/diageo-deo-is-the-toast-of-the-town-on-four-continents/#commentsFiled under: ,

In a skittish market, it's best to look for companies with the resources, experience, and geographic footprint necessary to ride out what could be more-challenging economic conditions in the year ahead. One company that fits the above bill is Diageo (NYSE: DEO).

Diageo is the world's largest producer of alcoholic drinks, with a stable of well-known brands, including Johnnie Walker Scotch, Smirnoff vodka, and Seagram 7, among others.

In general, analysts see 6%-9% revenue growth in the U.S. and solid, double-digit growth in Latin America and Asia. Modest growth is expected in Europe. Operating margins are better than adequate. Moreover, DEO's four-continent footprint should help the company deal with a U.S. economic slowdown, if one occurs in 2008. The Reuters F2007/F2008 EPS consensus estimates for DEO are $4.46/$4.92.

Continue reading Diageo (DEO) is the toast of the town... on four continents

Diageo (DEO) is the toast of the town... on four continents originally appeared on BloggingStocks on Wed, 26 Dec 2007 17:13:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alcoholic beverage sectorDEODiageodistillersliquor stocksLiquorStocksvice stocksViceStocksWed, 26 Dec 2007 17:13:00 EST