Why Cott is Poised to Underperform
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, beverage producer Cott has received an alarming one-star ranking.
With that in mind, let's take a closer look at Cott and see what CAPS investors are saying about the stock right now.
Mississauga, Canada (1955)
CEO Jerry Fowden
CFO Jay Wells
Return on Equity (average, past 3 years)
$88.1 million / $603.9 million
Dr Pepper Snapple Group
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 39% of the 267 members who have rated Cott believe the stock will underperform the S&P 500 going forward.
With margins getting beat up by increase price of material costs ie Aluminum and Sweetners, it will be hard for [Cott] to cut those costs. [Insider selling] is never a good sign. Cott also has a high level of debt but they do suggest a good paydown schedule.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.
The article Why Cott is Poised to Underperform originally appeared on Fool.com.Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend The Coca-Cola Company and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.