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Take profits on Majestic Wine

SHARE TIP: Majestic Wine (MJW)
June 16, 2011

BULL POINTS:

â–  Best-in-class customer service

â–  Gaining market share from failed competitors

BEAR POINTS:

â–  Shares trading close to record high

â–  Weak UK wine market

â–  Underlying growth rates slowing

â–  Constraints to store opening programme

IC TIP: Sell at 451p

In a tough consumer environment, retailers need to be at the top of their game, and no one can accuse Majestic Wine of being anything other than a top-class operator. That it has gone from strength-to-strength in a market that has seen three major competitors collapse over the past three years is testament to how good a job its management team, under the leadership of chief executive Steve Lewis, is doing.

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