BUD does not need to buy BREW. They already appear to enjoy an insider deal. Why else would BREW have sold what was in my opinion their crown jewel: Goose Island, to BUD? I decided not to buy BREW on that basis (potentially a mistake in retrospect). We'll see in 10 years or so.
I tend to agree with bbdott that SAM is a much better business, even at its current crack smoking 53 PE. (Still waiting to buy back in at more favorable prices when the market corrects a bit). BREW's PE near 800, large debt to equity, high price to sales, and minority shareholder (BUD) that gets to cherry pick BREW's assets are not something that I want to invest in.
THat is pure drivel. The CROWN JEWEL was GOOSE?????
KONA is growing at 27% compounded for 5 years. You said it was a FAD three years ago.
KONA is the LARGEST of the BREW brands. Another FACT you seem to have difficulty grasping.
And you are wrong.
It is very likely someone would make a run at the real jewels of the company... why not? CRAFT is where you need to be, and there are only so many jems.
Hell, someone could make a run at these items simply to #$%$ off A/B. WHy not? If they pass you get the brands and breweries. But you are right, they don't have to buy BREW, but if others make a bid, they have to beat it or sell. Maybe you have not read these agreements either.
And dooofus. really? 5,000 anti BREW posts screaming about the P/E. And it has only gone up. 5,000 POSTS!
Its CASH FLOW baby.... oh, and crown jewel brands.
You post #$%$, it just keeps notchin new highs....
Anybody looking for a laugh... go read his SELL #$%$ at sub$5. Yup. THis is a guy you really need to listen to!
kb, I'm just not sure that you are going to have much of a chance to buy SAM "cheaper". It is starting to look like a stock few investors want to sell, due to the potential LT upside. I think the market may have finally figured out that the quarterly earnings can be "manipulated" with variable expenses. I'm always up for adding at lower levels, but don't see it happening due to the lack of float. How many of the 8M shares actually ever trade? Many are in brokerage accounts that aren't selling them. It's all about supply and demand, even mutual funds want to have SAM in their quarterly statements. There is certainly no sign that the overall business is slowing and in the world of limited growth vehicles this looks good.
bddott, a not so easy question for you. I was one of those folks that love SAM, but thought it would go below $ 29/ share and did not buy it. would you be a buyer at these prices? Every day it seems SAM is going higher and higher. I assume Koch has not interest in splitting the stock, no reason to do so.