Tap should just work on paying down their debt. With the low p/e and all the world wide M&A of beer Co's over the past few years, one of he monsters like Heineken will come knocking with an offer soon enough. Btw, to all u value folks out their, check out dps, and enr(includes banana boat and schick). K is also getting riper.
Standard & Poor's Ratings Services raised its outlook on Molson Coors Brewing Co.'s (TAP) ratings to positive, a move that follows the brewer's recent debt repayment.
The ratings firm's outlook was raised to positive from negative, a far rosier view attributed to Molson's recent repayment of $575 million in convertible senior notes. S&P's rating, at triple-B minus, is the lowest investment-grade level.
S&P lowered its outlook on Molson Coors in April 2012, warning a downgrade could occur if the company failed to sufficiently improve its financial profile by the end of 2013. That move was a reaction to Molson's more than $3 billion bid to acquire Central and East European brewer StarBev LP.
The StarBev deal later closed, and the acquisition has bolstered Molson's overall sales the past few quarters. But Molson has been stung by weak consumer demand for some of its beers, as well as poor weather across some of the company's markets during the key 2013 summer selling season.
Earlier this month, Molson reported its second-quarter profit more than doubled due to a sales boost from the StarBev acquisition.
Shares rose 0.5% to $48.66 in recent trading.
not likely there is a two class stock system in place to keep the molson and coors families in control. they have 50%. once debt from starbev takeover is paid down divi increases will continue. i like this companys growth prospects without takeover. things are just getting started overseas.
Got it. I bought some tap a while back before the starbev acquisition partly because I liked the balance sheet. I knew nothing about starbev, and the debt load they took on put me in hold mode. Should be good long term if they continue paying down debt. Any thoughts on any others in industry...like heineken or carlsberg?