1.7B Market cap? This will be taken over by big guys soon or later. I am buyer here.
In case anyone missed Cramers comments 2 days ago. Short open interest was 24%. The squeeze may be on! You can't beat quality and consistency. That's what this product is. They re innovators in what they do, and they will long be around when many of these as runs get ran out of business or quit when it's not fun anymore.
SAM reported very poor 1st Qtr results and the market reacts with a higher stock price? Does ANYBODY who owns this stock take the time to read the Press Releases? Revenues were DOWN 14% Year over Year. 14%. AP actually let its Robot press release set a headline that said SAM actually beat its 1st Qtr. Estimate! What an outright lie. I'm shocked that AP is not worried that somebody will sue them for false reporting. Had it not been for a 1 time accounting adjustment of $.28 per share, SAM had 1st Qtr earnings of $.17, well below the street estimate of $.26 per share. This brewery is in big trouble and the market does not see it. It's truly fascinating. Depletions were down 14% from same time last year. My only assumption is that the Board of Directors is in the market this morning spending more of their money buying back stock like crazy. THey bought back 283,000 shares for $43.3 million the 1st Qtr. paying an average of $153 per share. How do they justify spending all their cash on a sinking stock? Just so their CEO and owner can go in each day and sell 7500 shares for a better stock price. Two key people have already jumped off the ship - Martin Roper, their CEO is leaving, and a Board member recently announced he is stepping down.
Sam Adams got a huge problem in marketing its products. It is simply too expensive and price has to fall further as a legitimate punishment.
Where is BBdott
Got a great report from http://thesubwaytrader.com/?s=SAM about $SAM. I did have to subscribe but it was worth the time. Thank you guys for the tip! Project slightly behind original schedule due to unforseendifficulties.(we are working on something else.) Making money day trading.
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I wish Constellation Brands (STZ) would buy SAM at the low-low-low price.
Boston Beer Co Inc NYSE $SAM Correlation Histogram
X axis : Stocks Price Correlation Coefficient Y axis : Quantity of stocks Sep-2016 1,000 Day Parameter 4,338 NYSE Stocks Price Analysis This stock mode of correlation coefficient is 0.2 In other words, the correlation coefficient of the other stocks
Beer bubble burst... Jim Cramer pumped beers stock to have PE of 40..
SIX things will move SAM lower. 1. Declining revenues across the board. 2. Lower margins due to their big new ad campaign. 3. Trading at 30x 2017 earnings despite declining revenues and earnings. Shouldn't that be 10x? 4. The CEO just quit. 5. The founder and Chairman just announced a huge stock sale plan despite the stock being cut in half. 6. Craft beer industry is saturated and more are coming every day. Either need to be huge like Bud, Miller and Coors or be local.
2 things will move $SAM higher. 1. instituting some sort of dividend. This will drive shorts out of the name and value investors in. 2. brewing a hefeweizen or similar wheat beer. The sweetness is what everybody likes. Tampering with/creating a million different IPAs s not appealing to beer consumers.
Should SM purchase ROX to get into the growing spirits market? The knock on SAM is that craft beer is becoming very competitive, and that a move in a new vertical is needed. ROX (Castle Brands) just signed a deal with Walmart for product and they have a nice, though under-marketed spirit lineup. SGA savings and SAM distribution could triple revenues at ROX in 36-60 months. It feels like a low risk, potential high return move.
Thanks for the tip, I did some research and found more information about $SAM on http://yugestocks.com/?s=SAM _talk to a person about himself Day trading trading stocks.
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Perhaps a short-term pull back is more likely before the next rally on SAM? Do you guys find it difficult to know when to buy or sell something? I prefer to get my stocks from awesomeSTO-CKS.
This will likely be acquired rather quickly if the management is willing to sell... A very attractive entry point here...
So Martin Roper, CEO, is walking away next year from a job that pays $800,000 plus perks, like running a beer company, at the peak age of 54. Why? This is from last year's Proxy: "In December 2007, the Compensation Committee and the Board of Directors approved the 2008 CEO Option, a long-term variable price option grant to Mr. Roper for 753,864 shares of the Company’s Class A Common Stock, effective January 1, 2008. This 2008 CEO Option, part of a long-term compensation strategy to provide the CEO with compensation comparable to that which he could receive elsewhere, had a value of approximately $6.34 million at the date of grant. The 2008 CEO Option vested 20% on January 1 in each of years 2014, 2015, and 2016, and will vest an additional 20% in each of 2017 and 2018, contingent on Mr. Roper’s continued employment with Boston Beer.
I'm guessing the strike price on the options is something less than the stock price of Sam in 2008 which was about $35/share. By the way, 753,864 represents about 6% of the company, so the Board gave Roper 6% of the company for being CEO. That's insane. If Roper stays thru 100% vesting in all those options, he could make about $80 million. That's for being the CEO of a beer company. Furthermore, the Board granted Roper another 547,507 options which vest from 2019 to 2023. Roper's not even sticking around for that vesting because the strike price is around $200/share, where the stock was back in Dec 2015. He knows Sam will never see that price again. WHat the heck is the Board doing potentially offering to give another 4.3% of the company to the CEO? It's a beer company, not a tech company.
The Board of Directors of SAM should be ashamed of themselves with the Stock Repurchase - wasting company assets trying to prop up the stock price for management's sale of their own stock at inflated prices. What a waste of money! This is from their press release: "During the fourth quarter and the period from January 1, 2017 through February 17, 2017, the Company repurchased 275,000 shares of its Class A Common Stock for an aggregate purchase price of approximately $45.1 million. As of February 17, 2017 the Company had approximately $154.7 million remaining on the $781.0 million share buyback expenditure limit set by the Board of Directors." The average price they paid is $164 per share. Stock is at $154 right now (and my guess is they are continuing to purchase stock and waste shareholder assets. THey could have paid a $5.00 Dividend with that $45 million instead of wasting it.
From their 3rd Qtr. Press Release issued Oct. 20, 2016: During the 39-week period ended September 24, 2016 and the period from September 25, 2016 through October 14, 2016, the Company repurchased approximately 807,000 shares of its Class A Common Stock for an aggregate purchase price of approximately $138.4 million. As of October 14, 2016 the Company had approximately $196.5 million remaining on the $781.0 million share buyback expenditure limit set by the Board of Directors.
So they paid an average price of $171.50 per share. So the "loss" on these purchases is $16.1 million. The Board of Directors spent the $138.4 million above, plus another $45 million the first qtr. of 2017 for a total of $183.4 million. That's more money than they've made in the past 2 years total. They could have paid out about $14.40 per share in dividends.
What company spends every single $ of earnings buying back their stock in a company that is declining in sales and in profits? Sam does. that's who. Koch owns 27.3% of the outstanding shares. No wonder.