00:00 But let's start with the conservative Diageo.
00:02 So give us what they said here, Money Mitch,
00:05 and then we're gonna jump into, you know,
00:07 why I say this is actually the disaster of the day
00:09 and not Trade Desk.
00:11 - Yeah, I wanna give you guys a little insight
00:13 if you guys don't know this company.
00:14 I know I wasn't too familiar, so why not share it, right?
00:17 Brands include, of course, Johnny Walker,
00:19 Smirnoff Vodka, Crown Royale, Captain Morgan,
00:23 Casamigos, Tankeray, which is pretty good too,
00:27 and that Guinness Stout, of course,
00:29 and Bailey's Irish Cream.
00:31 - All the big names, Crown Royale.
00:34 If you go to, in Canada, you go to a liquor store,
00:36 you go to your corner liquor store in the States,
00:39 I mean, you go in, you buy liquor,
00:41 you're buying from Diageo.
00:43 - Yeah, let us know if you guys take any of the,
00:45 if you guys get any of these products.
00:47 You don't have to give us too much,
00:49 but of course, shares are trading lower
00:51 after the company said it expects slower growth
00:54 in the first half of fiscal year '24
00:56 than the second half of fiscal year '23
01:00 due to weaker conditions in Latin America
01:03 and the Caribbean, of course,
01:05 seeing kind of that consumer spending coming down.
01:08 - Here is the major concern here, though,
01:11 is that Diageo is a defensive name.
01:14 Diageo is a stock that works in all types of markets,
01:17 because people still drink.
01:20 So Diageo is the kind of stock that people invest in,
01:23 saying, "I know my money is safe.
01:25 I come into a stock like Diageo
01:27 or even Constellation Brands,
01:28 knowing that I'm not gonna lose 15% in one day."
01:32 This stock just doesn't do that.
01:34 When is the last time Diageo lost 15% in one day?
01:37 I can't remember.
01:38 I don't even know if it ever has lost 15% in one day,
01:41 but I'm just looking at the charts,
01:43 maybe in the COVID crisis,
01:44 because everything was just getting hammered back then,
01:47 and that was obviously not the case.
01:49 We had the stock market one day down 11%, so maybe then,
01:53 but overall here, this is just not a stock
01:57 that falls 15% in one day,
02:00 and that is what we are getting.
02:01 This is an ADR.
02:02 It's traded overseas,
02:03 so it's not like it's gonna bounce right back.
02:04 It's already been trading actively overseas
02:06 for four hours here now.
02:07 So this is priced in.
02:08 This is an open market DEO right now.
02:10 This isn't pre-market for DEO.
02:12 This is the open market,
02:13 but when you look at stuff like this,
02:15 it turns you off of investing in anything.
02:18 Like, I mean, and I've been saying it all along.
02:20 Why invest in conservative staples,
02:24 and Diageo would be considered a staple, I would say.
02:27 Why invest in conservative stuff like this
02:30 when you can go get 5% risk-free,
02:32 or in the case of Ontario,
02:34 you're almost at 6% risk-free now.
02:37 You're getting a 2.88% dividend,
02:38 which is half of the risk-free rate,
02:40 and the growth is obviously not gonna be there.
02:43 So, I mean, this is just why these stocks
02:45 just aren't attractive in a higher rate environment.
02:48 In a 1% environment or a free money environment,
02:51 back up the truck.
02:51 These are the stocks you wanna own,
02:53 because, I mean, there's no alternative,
02:54 but there is an alternative now,
02:56 and that alternative is cash.
02:57 No reason to own these types of stocks,
02:59 and if you're gonna see staples like this
03:01 fall down 15% in one day,
03:03 it makes me not wanna buy any staples.
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