As we approach the halfway mark of 2018, we begin to shift our relative stock-picking screen to include 2020 estimates in our cash EBIT (EBITDA less capex) growth versus EV/cash EBIT analysis. Based on historical performance, this has been a good screen for finding relative outperformance in the group. In summary, stocks with higher cash EBIT growth tend to outperform those with lower growth historically over 12-month, 18- month, and 24-month periods. In this edition of Converging Networks, we update our analysis to include 2020 estimates and discuss which stocks we believe are more likely to outperform over the next 12 to 24 months.
‘Burgeoning N.S. wine industry embraces cool temperatures, rocky soil to make award-winning wines’ – so went a headline in The Canadian Press (March 30, 2016) leading into a story by Melanie Patten1 about N.S. wines. Improbable? Not really.
Ms. Patten went on to state, perhaps a shade optimistically: ‘Past the rocky, ocean-battered coastline of Nova Scotia is an unlikely tale of success: a burgeoning wine industry producing palate-pleasers that connoisseurs say can rival what Champagne, France, has to offer.’ Our provincial government seems to share Ms. Patten’s enthusiasm.
Government invests in Wine Lab
Last June, agriculture minister Keith Colwell2 joined industry guests at a grand opening at Acadia University in Wolfville. He announced an additional investment of $916,750 for the Acadia Laboratory for Agri-food and Beverage – the so-called Wine Lab.