I bought
Marston’s (LSE: MARS) stock in late 2018 at a share price of 98p because, at the time, I thought it was worth closer to 140p. Marston’s shares were trading at a price-to-earnings ratio of around 7 when I bought, so they looked cheap. Also, there was a 7.6% dividend yield on a trailing 12-month basis on offer. Today I sold my Marston’s stock at 100p.
Why I bought Marston’s stock in 2018
I liked the portfolio of beer brands that Marston owned. The company had recently acquired the Charles Wells Brewery, expanding its presence in the UK ale market. There was a broad portfolio of pubs covering everything from upmarket to local taverns. Of particular interest was Marston’s rooms business. Rooms are either attached to pubs or in custom-built lodges next to a Marston’s pub. These offer a revenue source and also drive revenues at the pubs. Marston’s was adding a couple of hundred rooms a year, and increasing the occupancy rate and average daily rate (two key me