Who is Diageo (DEO) and why should I care?
Diageo produces and distributes a collection of branded premium spirits, beer and wine. It produces and distributes a range of premium brands, including Smirnoff vodka, Johnnie Walker Scotch whiskies, Captain Morgan rum, Baileys Original Irish Cream liqueur, JeB scotch whisky, Tanqueray gin and Guinness stout. In addition it also has the distribution rights for the Jose Cuervo tequila brands in the United States and other countries. Diageo’s beer brands include the global stout brand, Guinness. You should care about this right now because holidays present an opportunity for beverage companies to make a lot of money. With Thanksgiving, Christmas and New Year’s Eve so close together, the spending in liquor increases this time of year. So your catalyst here is the holiday season. Now let’s talk numbers and why I think DEO is too cheap. Earnings: Daily Chart: The Case: A key factor in determining where a stock like DEO is going is figuring out how earnings dictate stock price. So, here’s m
