Jose Cuervo Is Going Public, but Should You Buy It?


Jose Cuervo

After recently hitting several milestones, the stock market has slowed down quite a bit. Though the Trump presidency just started and exciting IPOs like Snapchat‘s are expected to hit in the coming months, many investors feel the current market is one of the most boring in recent history.

Luckily, investors and traders about to celebrate with something millions have used to cure their boredom: tequila. That’s because Jose Cuervo, the world’s largest tequila producer, is about to go public.

Becle, the parent company of Jose Cuervo, expects to raise $770 million when the go public in the coming months. Due to the falling value of Mexico’s peso, Becle tremendously benefitted from exporting their tequila to other countries. Becoming a public company would help them grow their export business while possibly offering more products in the future.

The Wall Street Journal recently put together this informative video on the company’s recent growth and activities. Once you understand how the company has performed and how they expect to perform in the Trump era, you might even want to invest in them yourself. But should you?

Should you invest in Jose Cuervo? With President Trump’s proposed import tax on Mexican goods, the price of Jose Cuervo could become significantly more expensive for U.S. consumers. If Becle expands to other markets after the IPO, they wouldn’t have to rely as much on U.S. sales and could still thrive as other Mexican exporters struggle.

If you think the liquor export business or the spirits market in general will continue to grow and Becle will benefit from this growth, you might want to do your research in the company before you purchase them in the future. If you’re cautious about buying a company at their IPO and want to see how they perform as a public company, you might want to wait for things to cool down first.