3 Reasons to Worry About Central European Distributionhttp://www.fool.com/investing/general/2012/07/09/3-reasons-to-worry-about-central-european-distrib.aspx Nicole Seghetti
July 9, 2012
Picture it: You're in a bar. You're slightly disoriented due to the thumping music, the hazy room, and the one-too-many cocktails you've enjoyed. Your eyes affix on an attractive person across the smoke-filled room. You've got enough liquid courage coursing through your veins to make your move, so you go for it. As you stagger toward your prey, images come into focus and you realize the object of your desire is an old-school telephone booth.
Reminds me a bit of New Jersey-based Central European Distribution (Nasdaq: CEDC ) , a company that produces, imports, and sells vodka in Poland, Russia, and Hungary. This $220-million-market-cap company also imports spirits, wine, and beer including brands Jim Beam, Corona, and Budweiser. The stock currently trades for roughly $3 per share and is down 91% from five years ago.
At first glance, this stock has the makings of a great "Hey-I-made-a-bundle-off-this-cheap-stock" story. But while this stock resides in a sexy industry and is trading at a rock-bottom price, there's more to this narrative.
Let's remove our vodka goggles and examine three reasons this company warrants a closer look: