Matt Franz : Zealous For Knowledge

Molson Coors

Molson Coors (TAP) recently made a transformative acquisition that was funded primarily by debt. The heavy debt load and declining North American beer volumes have forced the stock to a 52-week low. However, the company’s consistent and substantial free cash flow will allow it to quickly deleverage itself. At a constant EV/EBITDA multiple, this will boost equity values.

You can read all of my thoughts here.

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