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OPPORTUNITIES (4) M&A Opportunities ■■

Management and the Board have a proven track record of creating shareholders value through careful acquisition/merger/JV transactions. We believe there will be further industry consolidation, and the Company will be able to take advantage of the opportunities to create further value for the shareholders.

Long-Term Minded Controlling Shareholders ■■

The Molson and Coors families have allowed/guided Management to execute corporate decisions that sometimes cause short-term pain but create long-term value (e.g., suspended share buybacks and frozen dividends to deleverage, increase debt/leverage to acquire).

Further Cost Saving Initiatives ■■

We are impressed by Management’s recent statement that its 2017-2019 cost saving program will now deliver +27% additional cost savings than originally planned, which has seen an upgrade of total cost savings from USD550M to USD700M. Higher margins may also produce a virtuous cycle which could further accelerate the re-rating of the stock.


Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018