Fri, Aug 29, 2014, 6:20 AM EDT - U.S. Markets open in 3 hrs 10 mins

Recent

% | $
Quotes you view appear here for quick access.

Boston Beer Co. Inc. Message Board

  • investoratheartbeer investoratheartbeer Mar 20, 2013 12:14 PM Flag

    SAM vs. BREW

    I love what SAM is doing for the business and can't wait to see how much they continue to dominate BREW. BREW is banking on Kona to be their savior, but they are also reducing their brewing capacity by 60-70% to do so. I see more upside for SAM as those companies that aren't sticking to a solid multiyear strategy get crushed.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Sam Adams is a decent business, but with it's current size/market cap this is way overpriced in my view. This is creeping up close to 40x earnings and has a market cap of over 2B dollars. Earnings growth has been muted at best recently, so I see very little justification for buying at these high prices. I'm short SAM right now.

      • 1 Reply to principletrade
      • I agree that SAM is a bit expensive (to the extent that I have sold Sept 150 calls against my shares), but to be short SAM is the inverse of trying to catch a falling knife: trying to stop a freight train.
        I would not want to be one of the short sellers that has enjoyed a rise from $114 to $160 since December. I expect that the market can remain irrational longer than most shorts can remain solvent.
        Good luck.

        Sentiment: Hold

    • I investigated BREW as a normal part of comparing the competition of my long position in SAM. An interesting company, but I decided to pass when they sold Goose Island, which should have been one of their crown jewels, to BUD. I viewed this as an inappropriate self-dealing insider transaction that benefitted a large minority shareholder at the expense of everyone else. I would have been #$%$ if I was a BREW shareholder.
      Comparing Kona to Goose Island? Please. Few people that have tasted both would prefer Kona, at least in my opinion.
      Also, comparing metrics between SAM and BREW, I am much happier owning SAM than BREW on either a PE, debt or any other basis other than perhaps market cap. I will be interested when or if BUD disposes of their large minority interest. Until then, I will stick with SAM and an informal ownership of SAB/MILLER via Altria.

      Sentiment: Hold

 
SAM
223.00-3.00(-1.33%)Aug 28 4:02 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Williams-Sonoma Inc.
NYSEThu, Aug 28, 2014 4:02 PM EDT
Veeva Systems Inc.
NYSEThu, Aug 28, 2014 4:01 PM EDT