- Retail Earnings and Sales to Improve in Q4: Analyst
- Consumers Catching the Holiday Spirit
- It's Beginning To Look A Lot More Riskless
- Crescenzi: Claims Level Suggests End to Job Losses
- Hedge Funds Take Early Lead in Warren Buffett's 'Big Bet'
- S&P Stocks Trading at New 52-Week Highs
- 4 Food Stocks to Stuff in Your Portfolio: Analyst
- S&P at 1050-1200 Trading Range Next Year: Strategist
- Treasury On Mortgage Modifications
- For Many in US, It Will Be a Scaled-Down Holiday Season
- Judge Erases Couple's $525,000 Mortgage Payment
- Where Do Pardoned Turkeys Go?
- Foreign Demand Boosts US 7-Year Treasury Sale
- New-Home Sales Jump to Highest Level in Over Year
- Consumers Catching the Holiday Spirit
- Jobless Claims Below 500,000, Durable Orders Slip
- Activision Prepares to Double Dip on ‘Modern Warfare 2’
- Garlic Price Rises Surpass Gold, Stocks in China
MOST SHARED
- Ritz-Carlton ?Struggling? in the US: President
- Garlic Price Rises Surpass Gold, Stocks in China
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- S&P Stocks Trading at New 52-Week Highs
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Oil Price to Average $75.40 in 2010: Poll
- Americans Ditch Planes for Trains this Thanksgiving
- Jobless Claims Below 500,000, Durable Orders Slip
- Consumer Mood Improves, But Anxiety Over Personal Finances
- A Facebook Christmas
Text Size 
It’s been a hard time out there for hard liquor. The Dow Jones Distillers & Vintners Index is down 10% YTD. On “Squawk on the Street,” CNBC's Mark Haines asked Brent Wilsey, president of Wilsey Asset Management why the winemakers and distilleries seem to be suffering from somewhat of a hangover.
“It’s a better time to be drinking the wine than buying the companies” right now, Wilsey said. He sees the main problem in the wine sector is inventory. Companies are seeing a glut of inventory and are looking to get rid of it – but to clear out inventory, one must lower prices, and that is why the sector isn’t performing.
Wilsey looked to two distillers in particular: Constellation Brands [STZ
Loading...
()
] and Brown Forman. His outlook on both is that they are too expensive and he urges investors to “be patient” with the stocks, as more downside is likely ahead.
Constellation Brands has seen a sales increase of 12% - yet its earnings last quarter only rose 1%. Why the disparity there? Wilsey says Constellation’s problem lies in their debt level – the company currently has about 130% debt-to-equity ratio and, Wilsey says, “that’s a little high for my comfort zone.”
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
- Eric Schmidt pledges to create a virtual copy of the Iraq National Museum at Google’s expense.
- Bill Griffeth is taking a leave of absence from CNBC and Power Lunch for a year. Here's a message from Bill.
- More shoppers than ever plan to comparison-shop this season. Who will benefit?
- It may be the most unusual guide to business you'll read.
- How can you get out of debt and back on the road to recovery? Follow these ten steps.
Data is a real-time snapshot *Data is delayed at least 15 minutes