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Boston Beer Co. Inc. Message Board

  • mickeyearsobama mickeyearsobama Apr 5, 2013 11:52 AM Flag

    Needs to fill the gap

    Any chance SAM will fill the gap at 118? If it goes under 150 that is where support is.
    One can only hope for a buying opportunity of a lifetime. Good luck to all.

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    • I doubt that $118 will be seen (I will buy more if it is), but I also do not expect that we will stay above 150 indefinately. I agree with the other poster that 34x earnings is quite expensive.
      I would not want to be short directly, but I have sold Sept 150 calls against my shares, and I do not expect to be exercised. Options are so illiquid in SAM that they are almost untradable, so I expect to be short my calls until expiration. If SAM goes to the 130s in June, I will try and buy may calls back for about $2. Either way, I expect to still have my shares in October.
      While I wait, I will hoist a glass Boston Lager and toast my good fortune to have bought SAM way back when. Cheers!

      Sentiment: Hold

    • $150 would still be over 34x earnings. I feel that is far, far too high to be the "opportunity of a lifetime". This currently has a multi-billion dollar market cap, but it is priced like a small, growth oriented stock, even though earnings haven't been improving at drastic rates (last quarter earnings actually comped LOWER than the prior year).

      I will disclose that I am short here right now.


      • 1 Reply to principletrade
      • Did you remember to take into account that last quarter had one fewer week than the prior year's quarter?

        I'd say "good luck" to you, and your short position, however, I'd be being disingenuous. Instead, I'll just say thanks, in advance, for adding liquidity to the markets.

        I will disclose that I am long here, right now, AND I think Boston Lager is, indeed, the best beer in America, though I dearly love the Hopology 12 pack...

228.44+2.75(+1.22%)Oct 9 4:02 PMEDT