I will expect some selling tomorrow, but I think this company is on its way up; I can see this thing getting to a market cap of 10 billion in a few years time. Starting to sell in cans - this will cut down on costs and increase its consumption; may likely increase exports to Europe/Australia/NZ. On top of that....no debt; great brand name; a loyal following; a passionate CEO; potential aquisition target. A PE of 30+ is well justified at this stage in this company's history.
Sentiment: Strong Buy
We might get a buying opportunity, but the numbers were in line and Rev technically beat, plus depletions were very strong. Probably not the drop that we used to see. More and more investors want the few shares for LT holding reasons. There just aren't many shares available with the buyback in place. Also, don't forget, the first release of cans, will lead to an upside "surprise" and they just let that info out.
We will see Guitar Dude. I agree that a 32+ PE is a bit expensive, but the E might go up after Tuesday. I think that the slow motion short squeeze will continue. I know that I could not bear the pain of $33+/share losses on $114 stock in a short position since December 13th. Full disclosure: I have sold Sept $150 calls against my shares, and I do not expect to be exercised.
Agreed. Roast pork served with SAM's IPA, or perhaps their Octoberfest beer when it becomes available again next year. Yummy.
Mr. Guitar Dude must inhabit an alternate universe where people drink Milwaukee's Best, Pabst, Bud or similar swill. I imagine the gateway to this parallel universe is through a bong or similar device.
SAM is still a rounding error on BUD's balance sheet, and can grow their sales 10x before they will show up in market share loss for the big guys. Needless to say, 10x sales would make much larger increase in earnings.
And the shorts are still stinging since the Dec 13th pop. Latest report (Jan 15th) suggests that a few hundred thousand short shares have been covered, but that leaves 2.2 million remaing short. That works out to $55 million of pain at today's price around $140. I will hoist a SAM tonight and toast the shorts that are making so much money for me as they cover their margin calls at higher prices.
Earnings anouncement in about 2-1/2 weeks. My guess is more pleasure for me & thee, and more margin calls and PAIN for the shorts.