|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||44.52 - 45.19|
|52 Week Range||29.02 - 92.71|
|Beta (5Y Monthly)||1.12|
|PE Ratio (TTM)||27.19|
|Earnings Date||Jul 30, 2020|
|Forward Dividend & Yield||1.30 (2.96%)|
|Ex-Dividend Date||Jun 09, 2020|
|1y Target Est||99.21|
Constellation Brands inks a splashy deal with a well known, up and coming wine brand. Yahoo Finance speaks to the two people behind the transaction.
The NFL is by far and away the most popular American sport based on television viewership ratings. Roughly 25% of the nation's 100 most-watched programs of 2019 were NFL games. Furthermore, each NFL game reels in an average of 16.5 million pairs of eyeballs.As such, here are a few companies that could be heavily affected by the NFL's eventual decision on playing the 2020 season.Walt Disney CoWalt Disney Co (NYSE: DIS) is the owner of ESPN, which the broadcasting rights for Monday Night Football. MNF is watched by roughly 13 million people per week, and the high demand among advertisers to reach these viewers generated $285 million for ESPN in 2019.Should the NFL play a season, ESPN will benefit greatly, as well as Disney. The opposite can be said should the league decide against a 2020 season. Fortunately, a season without fans in the stands -- perhaps the most likely scenario -- is not an option that necessarily affects ESPN. Per Chris Camillo of "Dumb Money Live," Disney bolsters a pretty safe prospect over the long-term future."When this is over, Disney is gonna come back, and I think that kinda sets a floor on Disney's price," he said on a recent episode. "We all know they're coming back."Since the beginning of the coronavirus pandemic, Disney's stock has fallen about 21%. AT&T and ComcastAT&T Inc. (NYSE: T), the owner of DirecTV, is another media organization that could be heavily affected by whether or not the NFL decides to play a season in 2020. DirecTV powers Sunday NFL Ticket, a streaming platform that allows fans to watch any NFL game at any time throughout the season (save for games that are being broadcast in the watcher's local channels).Of course, no NFL means big problems for a product like Sunday NFL Ticket, and thus big problems for DirecTV. According to Camillo, a lack of NFL could be the nail in the coffin for users who have been contemplating the switch from cable TV to streaming platforms. "Here's the funny thing about AT&T and DirecTV -- that (a lack of sports and the NFL) I think is just going to cause an acceleration of cord-cutting," he said. "I think that, if we start to see these deals unraveling, and we think there's a likelihood of NCAA getting canceled and maybe even the NFL...I would potentially short Comcast and AT&T pretty hard."Since the beginning of the coronavirus pandemic, AT&T's stock has fallen 22% to $29.58 at the time of this writing. Aramark and Cintas Aramark (NYSE: ARMK) and Cintas Corp (NASDAQ: CTAS) are two of the leading service vendors to NFL stadiums. These companies provide food, beverage, cleaning and operational services to a number of venues.Thus, Aramark and Cintas could be affected at a troubling clip if the upcoming NFL season is played without fans, which seems like the most probable situation. However, both of them service restaurants and schools without the country, which appear to be on a path to return to partial service by the end of 2020."It's not just sports. I mean, any time you do an event at these stadiums (there will be a problem)" said Jordan Mclain, another "Dumb Money Live" host. "So you're not having the concerts, you're not having the sports...these guys are gonna be in trouble without all that business."Amarak is down over 35% since the beginning of the coronavirus pandemic. Cintas, on the other hand, has fallen around 10% in that time.Anheuser Busch and Molson Coors Beverage Co (NYSE: TAP) Sports and beer go hand in hand.One of the benefits that large, name-brand companies like Anheuser Busch Inbev NV (NYSE: BUD) experience with fans in the stands is the ability to provide one of few beverage options to fans. According to Mclain, this is a tremendous factor to think of when it comes to the potential of a 2020 NFL season without fans."I think at home, people have access to a wider variety of drinks, so they'll go get craft beer," he said. "But when you're at a stadium, they might have a few craft beer stands, but the majority most of the places (are selling) Bud, Coors...it's about the availability."Anheuser Busch is down around 25% since the beginning of the coronavirus pandemic.See more from Benzinga * 4 Stocks Poised To Breakout With The Return Of Live Sports(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
More than ever, the world's largest and most sophisticated shippers are using logistics technology to drive efficiencies in their supply chains and meet corporate sustainability goals.Consumers, employees and board members have become more aware of climate change and the carbon footprint of goods consumption. In response, many companies have issued ambitious sustainability targets to reduce greenhouse gas emissions, physical waste and water usage. In 2018, Anheuser-Busch Inbev (NYSE: BUD) announced its sustainability goals for 2025, which include using 100% recycled or returnable packaging materials, investing in renewable electricity, implementing sustainable farming practices, reducing water usage in breweries, and investing in local watersheds. The goals also call for a 25% reduction in carbon emissions across the company's entire value chain. As part of that initiative, A-B has come to focus on Scope 3 emissions, which include indirect emissions in the supply chain from suppliers and transportation partners. Anheuser-Busch's transportation needs are vast: The company operates more than 100 facilities in North America, from agricultural production sites to breweries, packaging plants and distribution centers. A-B moves roughly 800,000 shipments per year across 12,000 unique lanes. The beverage giant uses a large private fleet and is working toward a 50-50 balance between its own assets, which focus on dense, short-haul portions of the network, and purchased transportation for over-the-road legs.Asset-based carriers, traditional brokerages, managed transportation solutions and intermodal providers all play a role in moving Anheuser-Busch's beer and other beverage products to its customers. I spoke to Angie Slaughter, vice president of sustainability, logistics, SVC and capabilities procurement. Slaughter, an environmental and chemical engineer by training, has spent her entire career at A-B, where she started in 1997 as an engineering manager in brewing and utilities."Transportation is key to our long-term 2025 sustainability goal of reducing carbon emissions throughout our entire value chain by 25%," Slaughter explained. "Transportation is 9% of that. In addition to our consideration of alternative fuels — we're working with Nikola and Tesla to make our entire dedicated fleet zero emission — we are also looking first at optimization, reducing emissions through picking the right mode of transport in the first place, and ensuring that all backhauls are full."Filling Anheuser-Busch's backhauls poses a challenge and a massive opportunity for efficiency gains and reduced environmental impact. Every year, Slaughter said, A-B has 20 million empty miles in its dedicated fleet that need to be filled with freight. In 2016, A-B began working with Convoy, the Seattle-based digital freight network, on its supply chain. "As our relationship with Convoy has grown, we've learned a lot from them in terms of what they can do with data transparency and visibility," Slaughter said. "We deepened that partnership over time and now they assist us not just with shorter, complex lanes but also denser, more consistent OTR lanes."The data that Convoy generates for Anheuser-Busch goes well beyond visibility, which Slaughter said was a minimum expectation for all of its carriers. Convoy's real-time insights into transportation market cost and capacity availability help A-B buy smarter, Slaughter said. A-B already has a strong data culture where key performance indicators are constantly measured and ranked so that opportunities for improvement can be targeted, Slaughter said. In particular, Anheuser-Busch benchmarks all of its facilities, stacking them from worst to best, looking for outliers, and calculating how much could be gained if laggards were brought up to average performance and benchmarks. Convoy furnishes A-B with monthly facility reports based on carrier reviews, enabling A-B to identify hot spots within its network, understand the cost of operating inefficiently and rapidly implement changes."When you collaborate with your freight partners and combine your data, you build trust and stronger relationships," Slaughter said. "You're able to look more strategically at the total cost of shipping and the real value you get from your partnerships."Convoy's Automated Reloads program has started to make progress in solving A-B's 20 million empty miles challenge. With Automated Reloads, Convoy "batches" round-trip routes, booking headhaul and backhaul loads at the same time to keep trucks rolling and asset utilization high."On the digital freight matching side, batching loads and getting those full-turn shipments contracted is where we're going to see the biggest gains in the future," Slaughter said. Asset utilization in Anheuser-Busch's private fleet became even more challenging when the coronavirus pandemic affected part of A-B's business. Restaurants, bars, hotels and live sporting events, which represented a significant portion of A-B's sales, were restricted. Anheuser-Busch still had to move a substantial amount of volume, Slaughter said, but had to do so in a different way.With little insight into how the crisis would evolve and how consumer behavior would change, Anheuser-Busch needed transportation partners that could offer agility and creativity as events unfolded. A-B's planned distribution was disrupted as products that would have been allocated to restaurants and bars were shipped instead to grocery stores and supermarkets, requiring adjustments in purchased transportation well before the typical summer surge."COVID-19 tested the agility in our supply chain," Slaughter said. "It's been disruptive to a lot of people, and we have to be there for our consumers and ensure our customers are able to go to the grocery store and find their favorite beer at the right time. Where Convoy helps is being that partner that is still delivering, still meeting expectations and still coming to us with ideas for improvement. We expect them to challenge us and bring us new ideas and new thoughts about how we can improve."The good news, Slaughter said, is that consumer behaviors are starting to normalize as the economy reopens. But one pandemic trend that won't reverse itself is the technology adoption forced on supply chain managers and the transportation industry."The whole industry was forced very quickly to take on more technology adoption that won't reverse now," Slaughter said. "This crisis accelerated the digitization of freight and made it come faster." API integrations with strategic partners that provided real-time pricing as A-B raced to shift freight across its lanes were a critical element in managing the impact of the crisis. At Anheuser-Busch, the work never stops in building the most efficient transportation system for the business while also meeting A-B's ambitious sustainability goals."We want world-class operational excellence continuously driving efficiencies across our operation and our value chain — everything we touch in logistics — and that translates into cost savings, reduced emissions, improved driver experiences, all the way down the line," Slaughter said. "Ultimately what we want is our happy customers finding their favorite beers exactly where they're supposed to be."This article is published jointly with our partners at Convoy. To view more Future of Freight content, click here.See more from Benzinga * Convoy Rolls Out New Software To Qualify Safe Drivers * Is Amazon On The Hunt? Analyzing Rumored Macy's, J.C. Penney Acquisitions * Infographic: US Sanctions On Venezuela(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]
Leading Canadian cannabis producer Canopy Growth (NYSE:CGC) has been on a roller-coaster ride over the past few years, with CGC stock rallying from $10 to $50, before falling all the way back to $10, only to slightly recover to levels around $20.Source: Shutterstock But it increasingly appears that this roller coaster is due for a huge leg-up over the next few months, and that now is the perfect time to buy CGC stock.Here are four reasons why:InvestorPlace - Stock Market News, Stock Advice & Trading Tips* The fundamentals in the legal Canadian cannabis market are starting to meaningfully improve to a point where big growth is sustainable over the next few years.* Canopy Growth is successfully transitioning from "growing fast" to "growing smart," a pivot which will ultimately improve profitability and boost the stock.* Canopy Growth is in the early stages of penetrating the U.S. cannabis market, and successful ramp of the company's U.S. business over the next few quarters and years will add a lot of firepower to the company's growth narrative.* As the optics surrounding Canopy Growth improve over the next few quarters, investors will turn their eyes towards the fundamentals, which support a price tag for CGC stock up above $30. Canadian Fundamentals ImprovingAs one of the first countries to fully legalize recreational marijuana, Canada was due for some operational hiccups in 2018 and 2019.Of note, strict regulations largely limited the number of cannabis retail store openings, leading to a significant shortage of places where consumers could actually buy marijuana. Concurrently, the market suffered from a lack of options, as things like cannabis edibles, vapes and drinks were not available for purchase when the market first legalized. * 10 Robotics Stocks on the Technological Cutting EdgeBoth of these shortcomings have been addressed in 2020.Most of Canada is gradually moving towards an open store licensing process, which will remove a cap on the number of private cannabis stores that can be open. At the same time, the legal market has introduced a slew of cannabis alternatives in 2020, including edibles, vapes and drinks.These changes create a foundation upon which the legal Canadian cannabis market can now sustain big growth over the next few years.As the Canadian market does sustain big growth going forward, this will create a rising tide which will lift all boats in the market, CGC stock included. CGC Stock Is Growing Smart, FinallyCanopy has a new management team which is taking all the right steps to position Canopy for profitable, long-term growth.Specifically, management is reducing Canopy's global reach in an effort to streamline geographic focus in America, Germany and Canada -- the three biggest and most developed commercial cannabis markets. The company is also curbing production, downsizing the product portfolio and pivoting toward a data-driven, consumer-first model.In other words, Canopy is going from "growing faster" to "growing smarter."Naturally, that transition is weighing on near-term growth. But it also positions the company to launch better products, grow margins and expand its dominance in the world's most important cannabis markets over the next few years.In the big picture, then, Canopy is finally doing everything right to guarantee itself a bright (and profitable) future in the global cannabis market. U.S. Growth Is Coming SoonCanopy Growth has long held out on entering the U.S. cannabis market until marijuana becomes federally legal.But, in late 2019, the company broke its own rule, and launched a line of hemp-derived CBD products like soft gels, oil drops and creams under the First & Free brand in the U.S.In other words, U.S. revenue should start to show up for the first time on Canopy's income statement in 2020.That's a big deal, since the U.S. is Goliath and Canada is David when it comes to cannabis. Specifically, U.S. legal spending on cannabis measured more than $12 billion in 2019, while Canada legal spending on cannabis was less than $2 billion.To that end, it is critical for Canopy Growth to gain exposure to the U.S. cannabis market. Now, they've finally done that.I expect the U.S. business to significantly ramp over the next few years, boosted by potential federal legalization in 2021 or 2022, and for investors to grow increasingly bullish on Canopy's global growth prospects as its U.S. business starts to gain traction.Against that backdrop, CGC stock should move higher. Canopy Growth Stock to $30?Given the aforementioned points -- improving Canadian market growth prospects, a pivot towards higher-margin growth and entry into the U.S. market -- it's easy to see that the optics surrounding Canopy Growth will dramatically improve over the next few quarters.As they do, investors will start to turn their eyes towards the fundamentals.Those fundamentals support a price tag for CGC stock around $40.Canopy Growth is the biggest, deepest pocketed, most well-equipped player in the cannabis market. They reasonably project to be the Altria (NYSE:MO) or Anheuser-Busch (NYSE:BUD) of this space. Those are $100 billion companies. Canopy may not get that big because the cannabis market won't be as big as peer tobacco and alcoholic beverage markets. But it will get very big one day -- much bigger than its current $6.5 billion market cap.Within this mental framework, my modeling suggests that Canopy Growth will hit roughly $10 billion in sales by 2030, with 30% operating margins, and $5 in earnings per share. Based on a forward earnings multiple of 16, which is average for the market, that yields a $100 price target for CGC stock by 2029. Discounted back by 10% per year, that equates to a 2020 price target of about $33 to $34. Bottom Line on CGC StockCGC stock has been on a bumpy ride over the past few years. While this chop is entirely expected from a new, hyper-growth company in a new, hyper-growth market, it increasingly appears that this chop is going to end soon.What comes next? Secular growth. Thanks to improving Canadian market fundamentals, a pivot towards higher-margin growth at the company, and entry into the U.S. market, CGC stock looks ready for a sustainable move higher.And, because of that, now is the perfect time to buy CGC stock.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long CGC. The post 4 Reasons Why Now Is the Perfect Time to Buy Canopy Growth Stock appeared first on InvestorPlace.
(Bloomberg Opinion) -- Quibi’s day of reckoning is coming. It’s not looking good. When the short-form video app launched in April, Quibi gave users an extra-generous 90 days of free service rather than the typical two-week or one-month trial period. Those 90 days are up beginning July 5, and it’s at that point Quibi will discover how many of its earliest, most enthusiastic signups will become paying customers. So far, all indications are that there won’t be many. Quibi is on pace to have fewer than two million paying subscribers by the end of its first year, only 27% of its original goal, according to a Wall Street Journal article Monday.For Quibi, a startup trying to compete with established media giants in the streaming wars, its first few weeks have been more difficult than most. Quibi’s pitch was that it was taking Netflix Inc.’s reinvention of television viewing one step further: It would be mobile, and its name — an attempt at a clever portmanteau of “quick bites” — alludes to the fact that all the content is split into episodes that are no longer than 10 minutes each. It was looking to attract on-the-go viewers who are short on time. But then, suddenly, no one was going anywhere. The Covid-19 pandemic hit and Quibi quickly bit the dust.While TikTok, YouTube and Instagram are near the top of Apple’s app charts, Quibi is near the bottom. Other services such as Netflix and Disney+, which are more suited to longer periods spent binge-watching on a proper TV set, have also experienced a surge in subscribers during the crisis. It’s not only that Quibi’s short-form videos are more tailored to pre-pandemic life — it’s also that some of its content just isn’t that enticing. As the only app of its kind, it might have been good enough before the crisis, as it wouldn’t necessarily have had to compete head on with Netflix types. But it’s clear now that the company could have produced a better catalog of shows and movies, instead of placing so much emphasis on the app’s use cases and Turnstyle tech feature. In trying to become a mashup of Netflix and Instagram, it borrowed the brevity of social-media content and left out the human-connection aspect just as people were craving more of both. Even as the U.S. reopens, it may be too late for Quibi to spend what would be needed to make another big push at luring subscribers.Built by Jeffrey Katzenberg, a Walt Disney Co. movie veteran who co-founded DreamWorks SKG (with Steven Spielberg), and Meg Whitman, a longtime technology executive known for growing EBay Inc. and leading Hewlett-Packard, there were high hopes for Quibi under their leadership. That didn’t prevent Quibi from becoming a target of ridicule early on in some corners of Twitter for its name and for having the audacity to charge $5 a month while serving advertisements (or $8 without ads). For comparison, Disney+ costs $7 and has no ads. Even so, enough boldface names from Hollywood and the entertainment world had signed on to Quibi to create the sense that it was perhaps an underestimated challenger. There was Spielberg, Reese Witherspoon, Idris Elba, Laura Dern, Jon Favreau, Liam Hemsworth, Dwayne “The Rock” Johnson, Chrissy Teigen, Steph Curry, and on and on. Quibi also managed to raise nearly $2 billion from large investors including Alibaba Group Holding Ltd. and some of the top movie studios. The pandemic’s resulting stay-at-home orders didn’t cause Quibi’s problems as much as they exposed them. The Wall Street Journal article pointed to Katzenberg and Whitman’s clashing leadership styles as one ongoing source of tension. The need to conserve cash is another, with the company’s senior executives taking a 10% pay cut. Some advertisers including PepsiCo Inc., Taco Bell, Anheuser-Busch InBev SA and Walmart Inc. are already seeking to renegotiate their terms in part because of concerns over low viewership on Quibi, the article said. The Quibi team saw the app’s Turnstyle feature as a big selling point — “groundbreaking,” as Whitman has described it. When a user rotates their phone between portrait and landscape mode, they get different viewing angles of the same scene. It’s a neat feature, but one that’s just as easy for the average user to overlook or forget about, or just get lazy about using. The company is also facing a patent lawsuit over that same technology, and the suit is being financed by Paul Singer’s hedge fund, Elliott Management Corp. Before its launch, Quibi was the talk of the town, even if it was a punchline in some cases. More than two months into its launch, Quibi is forgettable. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Broyhill Asset Management, a boutique investment firm based in North Carolina, released its Q1 2020 Investor letter – a copy of which can be downloaded here. Established as a family office, the company invests with a long-term, objective, and rational perspective. You should check out Broyhill Asset Management's top 5 stock picks for investors to […]
Drinkworks also unveiled a limited edition Summer Solstice Variety pack, a refreshing collection of cocktails infused with seasonal flavors that features an Aloha Margarita, Basil Tom Collins, Blackberry Mojito and Strawberry Vodka Lemonade. The Summer Solstice Variety pack will be available for purchase on the Drinkworks website beginning June 15 for $49.99 MSRP in select markets. This new addition increases Drinkworks’ beverage portfolio to include more than 30 bar-quality cocktails, brews and ciders, with more coming soon.
Battery and fuel cell heavy duty trucking pioneer Nikola presented at an investor conference Wednesday afternoon. It’s the first time the highflying startup has presented since starting life as a publicly traded company.
Boston Beer’s stock can benefit from growth in the hard seltzer category, which was up 342% year-over-year in March, RBC Capital Markets analyst Nik Modi says.
As bars across Europe gradually reopen, up to a million free or pre-paid beers are waiting to lure back wary consumers. Beer makers from global giant Anheuser-Busch InBev to smaller craft brewers have set up schemes for consumers to buy drinks in advance to support shuttered bars with, in some cases, the reward of free beer when the doors reopen. AB InBev launched its first scheme "Cafe Courage" in Belgium and has since sold over 200,000 Stella Artois, Jupiler and other brands.
The oil sector is still rife with risk. Four experts offer up these stocks outside the oil patch that look like far more profitable investments.
* AT&T (NYSE:T) * Altria Group (NYSE:MO) * RCI Hospitality (NASDAQ:RICK) * Molson Coors Beverage (NYSE:TAP) * Anheuser-Busch InBev (NYSE:BUD) * Yamana Gold (NYSE:AUY) * Simon Property Group (NYSE:SPG) * ViacomCBS (NASDAQ:VIAC) * Champignon Brands (OTCMKTS:SHRMF)Although it's natural to mourn the cessation of the bull market, from another perspective, the novel coronavirus has gifted patient investors with a once-in-a-lifetime opportunity. Previously, so many companies had fundamentally strong business, but were gutted once the pandemic struck. Now, these stalwarts can be reasonably considered cheap stocks to buy.Better yet, no matter what your thoughts are on the market's trajectory, investors should be looking to advantage these lows. For instance, if you still believe in a quick, V-shaped economic recovery, then acquiring cheap stocks now would see you earn a swift profit.However, if we take the opposite road and slog it out through years of frustration, this would still be a net positive -- unless you must cash out now for whatever reason. That's because a slow recovery allows you to build a robust portfolio of high-quality names. By the end of these trials, you'll thank yourself for thinking ahead.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, not all cheap stocks to buy are viable bets for the long haul. As the bankruptcies of once-iconic American companies have demonstrated, we are still in the midst of an unprecedented calamity. Therefore, even solid names will likely suffer volatility, especially if we have an extended recovery.For this list of discounted companies, I'm primarily looking at businesses that can ride out the present calamity; hence, my focus on the vice industry. As well, I'm considering investments that may not find favor now but should have long-term upside. * 7 Red-Hot Vaccine Stocks Racing to Develop a Coronavirus Cure As with any pick you're considering, you should already acknowledge that turbulence is a given. Implement common-sense risk mitigation and you'll likely do well with these cheap stocks. AT&T (T)Source: Roman Tiraspolsky / Shutterstock.com AT&T is not only regarded among many analysts as one of the best cheap stocks to buy during this crisis, it's also incredibly boring. But remember, in the new normal, boring typically means stable, and stability is a very good thing. Here, this translates to T stock sporting a nearly 7% dividend yield.Additionally, AT&T features a forward price-earnings ratio of 9.5. That's incredibly low compared to both the telecommunications industry and broader benchmarks. Still, there's a reason for the discount. Over the years, the company has become very bloated, with some high-dollar decisions not working out favorably.Still, it's possible that the market is focusing too much on the negatives of T stock and not enough on the positives. For instance, the 5G network rollout will provide years of support for AT&T. In addition, the company owns HBO, which gives AT&T's streaming service much more gravitas than the competition. Altria Group (MO)Source: Kristi Blokhin / Shutterstock.com Admittedly, in the pre-pandemic years, Altria Group was disappointing. As you know, smoking rates are on the decline. Even worse, a new competitor, vaporizers or e-cigarettes, began providing a cleaner alternative to combustible cigarettes.However, MO stock became interesting when Altria invested heavily in Juul. However, underage vaping controversies saw Juul hit with lawsuits and ugly public accusations. Invariably, Altria's stake in Juul turned into a debacle.So, with all that, does Altria really belong in this list of cheap stocks to buy? While the headlines look terrible for the tobacco giant, the coronavirus may provide a surprising catalyst. According to research in Canada, recessions have a positive impact on smoking and imbibing rates. * 7 Cheap Stocks to Buy With Great Potential If this translates stateside -- and there's no reason to believe it wouldn't -- smoking rates could rise. Also, growing tensions between the U.S. and China may restrict vaporizer sales, which would cynically benefit Altria. RCI Hospitality (RICK)Source: Shutterstock Due to its universally attractive -- though admittedly shady -- business, RCI Hospitality is usually a solid bet, irrespective of broader market conditions. While RICK stock has seen a significant rise in value since hitting a bottom in March, shares are still sharply discounted relative to their pre-pandemic highs.But can RCI make good as a recession-resistant investment under these trying times? I will concede that this is a riskier proposition compared to other cheap stocks. Certainly, new normal protocols such as social distancing don't help when you're in the gentlemen's business. Still, this industry did very well, relatively speaking, during the Great Recession. I wouldn't be surprised if RICK stock provides an encore performance.At the end of the day, RCI meets a human need for close companionship that no technology can replicate. Granted, it's a cheap, twisted take on said companionship, but the demand is there. Molson Coors Beverage (TAP)Source: JHVEPhoto / Shutterstock.com Another vice-related company, Molson Coors Beverage is more palatable for investors than RCI. I mean that figuratively and literally. As a provider of multiple beer brands, including low-cost, budget-friendly beers like Coors Light and Keystone Light, Molson Coors has distinct relevance during our troubles.For many of us, drinking booze is a way to help get the edge off. Obviously, with the quarantines and social isolation, along with mass uncertainty over the viability of our economy, many reasons exist to knock down a cold one. But so far, it's TAP stock that's the one getting knocked down.Currently, shares are trading at levels last seen in the early years of last decade. What gives? * 25 Stocks to Buy for the Reopening Rally Unfortunately, shuttered restaurants have had a huge impact on Molson Coors and several other beverage makers. But with most states reopening -- and some blatantly ignoring common sense -- it's possible that cheap beer will start flowing again. Therefore, you'll want to keep Molson on your list of cheap stocks to consider. Anheuser-Busch InBev (BUD)Source: legacy1995 / Shutterstock.com Similar to Molson Coors, Anheuser-Busch specializes in cheap beer. For many years, Anheuser's flagship brand, Bud Light, has been the most popular beer in America, followed by Coors Light. Personally, I like the taste of Coors Light as far as cheap light beer goes. But Bud Light? It's simply awful.However, the customer is always right. And for the long term, you don't want to fight the tape on BUD stock. Right now, though, shares are at a remarkable discount. With BUD, you have to go back to the Great Recession years to see prices this low.Understandably, that might raise concerns. Typically, cheap stocks are cheap for a reason. In this case, Anheuser-Busch got rattled by the mass restaurant closure. Also, all popular cheap beer brands suffered a massive revenue reduction due to the quarantining of sports.However, the eventual return of sports -- as NASCAR demonstrated -- augurs well for BUD stock. Sure, there many not be fans in the stands but that will change over the next few years. Additionally, sports events provide an incentive for increased grocery sales of cheap beer, which is a net positive for this industry. Yamana Gold (AUY)Source: Shutterstock Fundamentally, you wouldn't consider Yamana Gold cheap. Currently, shares sport a forward P/E ratio of 31.5, which is high compared to the metals and mining industry. But on a technical basis, it's still one of the cheap stocks that you can pick up below double-digit prices.I'll freely concede that such thinking alone is a terrible reason to buy equity in an organization. But AUY stock is riding on the enthusiasm of the gold market. And while the yellow metal has frustrated many investors over the years, this time is different.Yes, those may be the four most dangerous words in investing. However, when Federal Reserve Chair Jerome Powell states that the U.S. economy faces unprecedented risks, this phrase is justified. * 7 Excellent Penny Stocks Ready to Roar Further, the labor market continues to print an ugly picture. Over a nine-week period, 40 million Americans filed for initial jobless claims. This number will probably continue to rise uncomfortably, giving AUY stock a cynical edge. Simon Property Group (SPG)Source: Jonathan Weiss / Shutterstock.com Usually, being the biggest U.S. operator in an industry is cause for celebration. But for Simon Property Group, which specializes in shopping malls, this distinction suddenly became a liability. Obviously, with the onset of stay-at-home orders, social distancing protocols and a sense of fear over contracting Covid-19, very few people could -- or even wanted -- to leave their homes. Naturally, SPG stock tanked.However, shares might interest risk-tolerant contrarians. I must be clear: This is among the riskiest of risky cheap stocks. Therefore, I wouldn't recommend spending a dime more than what your dumb money allocation allows.That said, Simon Property will gradually open stores as states lift their restrictions. As out-of-state travel data revealed, pent-up demand caused many Americans to run to regions that first reopened their businesses. We could see a similar dynamic play out for SPG stock.Another reason to be optimistic is that the company owns a large portfolio of outlet malls. Although traditional department stores are out of favor, retailers offering discounts will never go out of style. ViacomCBS (VIAC)Source: Jer123 / Shutterstock.com At first glance, you'd expect the quarantines to help lift ViacomCBS. Although a traditional content and entertainment powerhouse, ViacomCBS offers mainstream programs that many viewers find compelling. Yet that didn't help VIAC stock on the technical front, with shares plummeting throughout much of February and March.To be fair, VIAC has found robust momentum since hitting its March bottom. Despite that, shares are still discounted relative to their beginning-of-year price. Thus, ViacomCBS qualifies as one of the cheap stocks to buy amid this pandemic.More importantly, VIAC stock has a credible upside pathway. Mainly, the underlying company probably slipped into the background as pure streaming plays like Netflix (NASDAQ:NFLX) stole its thunder. However, as we work through this crisis, ViacomCBS becomes more compelling. * 10 Lithium Stocks to Buy Despite the Market's Irrationality For one thing, ViacomCBS has trusted news brands, which is more crucial than ever before. Additionally, the return of sports -- even in a mitigated fashion -- is a net positive for VIAC due to its live broadcasts. Champignon Brands (SHRMF)Source: Shutterstock Technically the cheapest of the cheap stocks on this list, Champignon Brands can be had for less than two bucks. Admittedly, this announcement will cause many investors to turn away from this company, and that's a good thing. You don't want to touch SHRMF stock if you can't take the heat.But if you can stomach the volatility, Champignon could be one of the most exciting opportunities available. Levered toward the burgeoning psychedelic medicine industry, SHRMF stock may strike you as another vice name. Actually, it's much more than that. Psychedelics offer profoundly positive implications toward addressing mental health issues.Most notable of all, Champignon Brands operates in a market that features incredibly high barriers to entry. Unlike cannabis, which anyone with enough drive can engage, psychedelics are strictly controlled by the federal government. Thus, your money is going to medicinal research, not toward a shady retail market.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he is long AT&T, Altria, gold bullion and Champignon Brands. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post The 9 Best Cheap Stocks to Fill Up On Now appeared first on InvestorPlace.
Japan’s Asahi Group Holdings said it has signed a 1.185 trillion yen ($11 billion) loan with Sumitomo Mitsui Banking Corp (SMBC) to finance the acquisition of Anheuser-Busch InBev’s (BUD) Australian subsidiary Carlton & United Breweries.Back in July, Anheuser-Busch, the world’s largest beermaker said it entered into an agreement for the Japanese beer maker to buy its Australian operations for an enterprise value of A$16 billion ($10.4 billion). The deal has received regulatory approvals and is expected to close on June 1.The brewer of Budweiser, Corona and Stella Artois said it will use the proceeds of the sale to reduce debt.Shares in Anheuser-Busch have this year seen their value cut in half as global lockdown orders tied to the coronavirus pandemic have curtailed beer and other alcohol sales as restaurants and bars remained closed and some countries like Mexico were forced to shut down beer production.The stock declined 0.6% to $40.90 as of Friday’s close in U.S. trading.Last week J. P. Morgan analyst Celine Pannuti upgraded Anheuser Busch’s stock rating to Hold from Sell due to valuation, while keeping the $39 price target intact.At the same time, the analyst cautioned investors to stay defensive in the European beverages sector amid expectations of a “much worse” second quarter following the worst quarter in recent history for the sector due to the fast spread of the coronavirus pandemic.Overall, Wall Street analysts are cautiously optimistic about the stock’s outlook. It scores 3 Buy ratings and 6 Hold ratings from analysts, which add up to a Moderate Buy consensus. Analysts do see some recovery in the shares with the $60.02 average price target indicating 47% upside potential over the coming year. (See Anheuser-Busch stock analysis on TipRanks). Related News: Facebook Workplace Hits 5 Million Paid Users As Remote Work Demand Rises KKR Invests $1.5 Billion in Reliance’s Jio Platforms In Biggest Deal In Asia Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing More recent articles from Smarter Analyst: * Visa Sees Solid Uptick In Spending As Lockdown Eases * Regeneron, Intellia Expand Partnership To Develop Hemophilia Treatments * Western Union Seeks To Buy MoneyGram; MGI Spikes 32% * Gilead Sinks 3% On New Remdesivir Data; Analysts Stay Sidelined
Asahi Group Holdings plans to borrow 1.19 trillion yen (US$11 billion) from Japanese lender Sumitomo Mitsui Banking Corporation to complete its long-brewing purchase of Anheuser-Busch InBev's Australian business.AB InBev, the world's largest brewer, agreed to sell its Australian business for A$16 billion (US$11 billion) to Asahi in July last year, after briefly shelving the Hong Kong initial public offering of its Asia-Pacific arm, Budweiser Brewing Company APAC, amid months of anti-government street protests in the city.The bulk of the proceeds from the sale of the Australian unit, Carlton & United Breweries, is expected to be used to pay down debt. AB InBev's debt topped US$95 billion at the end of 2019, following its acquisition of rival SABMiller two years earlier.Budweiser ultimately proceeded with a slimmed down IPO for the Asia unit in September, raising US$5 billion. Several companies delayed or cancelled their IPOs last year, as the street protests intensified and deal valuations declined in the summer. The IPO of AB InBev was a shot in the arm for the Hong Kong stock exchange, after it lost its crown as the top market for IPOs in the first half of the year.It was the second-biggest listing in Hong Kong last year after Alibaba Group Holding' US$12.9 billion secondary listing in the city. Alibaba is the parent company of the South China Morning Post.In a statement on Monday, Japanese brewer Asahi said it had signed an agreement with Sumitomo for the loan and would refinance the borrowing by raising debt and 300 billion yen of "equity credit attributes".The deal comes three years after AB InBev agreed to sell the beer brands Grolsch and Peroni, as well as some of the European operations of the former SABMiller, to Asahi for US$2.9 billion. The current deal for AB InBev's Australian business gives the Japanese brewer a much larger presence Down Under, where it already sells its Asahi Super Dry lager.Asahi originally planned to complete the acquisition in the first quarter, but announced in March that the deal would be delayed, as the companies were still awaiting approval from Australian authorities amid the coronavirus pandemic, which has forced many countries to close their borders and shut businesses to stem the spread of the virus.The coronavirus, which causes the disease Covid-19, has infected more than 5 million people worldwide. Australia's borders remain closed to international visitors, but the country agreed this month to create a travel "bubble" between Australia and New Zealand when it is safe to do so.The transaction is expected to be completed on June 1, Asahi said on Monday.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
You probably wouldn't pick Anheuser Busch (NYSE:BUD) as a play on the novel coronavirus.Source: legacy1995 / Shutterstock.com Unlike other publicly traded companies that have found positive momentum as states ease social restrictions, Anheuser Busch stock remains deeply embattled on a year-to-date basis. Nevertheless, I believe the markets are acting irrationally. When you break down BUD stock, this is one of the most compelling discount stocks available.First, the technical picture as I said doesn't intuitively come across as a potential recovery narrative. Last week, I discussed the bull case for Boston Beer Company (NYSE:SAM), which is backed by a strong management team, an equally strong brand and a compelling product mix.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnsurprisingly, SAM shares have skyrocketed off their March lows. In contrast, Anheuser Busch stock is wandering aimlessly. * 7 Excellent Penny Stocks Ready to Roar However, you can also look at this as a case of BUD building long-term support. Many investors don't want to buy into momentum; rather, they prefer getting in on the ground floor. But if you can stomach the risk, the potential for BUD is explosive.This brings me to my second point. Although the coronavirus has been devastating for virtually all businesses, it has also created pockets of opportunities for a select few companies. One of them is Anheuser Busch.As you know, the company specializes in budget beer brands such as Budweiser, Bud Light, Michelob Ultra and Busch Beer. In the pre-coronavirus days, that didn't quite help the case for Anheuser Busch stock, as millennials overwhelmingly prefer craft beer to traditional "corporate" brands.But genuine craft beer is primarily consumed in restaurants, bars and tasting clubs. These institutions went out of commission during the quarantines. Economic Realities Bolster the Case for Anheuser Busch StockNow, it's true that restaurants going out of commission isn't a completely clear-cut catalyst for BUD stock. After all, Anheuser sells their brands to restaurants as well. Furthermore, budget beer is huge at sporting and live events. Obviously, even with the return of sports, we won't know when governing agencies will allow large gatherings.However, the critical point about craft beer is that smaller companies were left with very few mitigating options. As I discussed about Boston Beer, they too had to deal with expiring kegs. But because of their strength and influence, they were able to channel their resources to make the best of the situation. Most craft breweries don't have that luxury.Cynically, this dynamic opened an opportunity for Anheuser Busch stock in that the underlying company essentially received free organic marketing. Just because a pandemic hits town doesn't mean consumers will magically abstain from imbibing. In fact, every data source indicates that consumers flocked to grocery stores to stock up on essentials: food, water, toilet paper and beer…lots and lots of beer.Indeed, reports indicate that all alcohol categories saw significant sales increases, but especially so for budget beer. Specifically, Anheuser's Busch Light sales jumped 44% over a two-month period. Put another way, demand for alcoholic products has always existed. The virus outbreak merely shifted it from one channel (bars and restaurants) to another (home consumption).Better yet, Anheuser Busch stock is likely to be unaffected by the velocity of economic rebound over the next several months. If we have a quick recovery, consumers will probably maintain their budget-focused mentality just in case. Because this crisis was so steep and unprecedented, they're not about to throw caution to the wind.If we slog it out, though, BUD still looks good because of its main products' lower price point. BUD Could Be an Unlikely HedgeIf you've followed my work during this troubling time, you'll know that I've always focused on the bigger picture. The megatrends I've been harping on for years will still reshape global societies; the novel coronavirus has merely delayed those shifts.As you can see for yourself with the alcohol demand, great opportunities don't die. Instead, they filter down the path of least resistance.That said, if we were to suffer a protracted recession, Anheuser Busch could turn out to be an unlikely hedge. According to data from the Great Recession, drinking increased significantly in the home as workers sought coping mechanisms from the many pressures associated with the downturn.To be clear, I'm not suggesting that investors buy BUD from the cynical angle that people will drink their troubles away. Tthat phenomenon will always be with us in any circumstance. Instead, I'm pointing out that millions of consenting adults turn to various products to help them deal with daily life. In a recession, this spark will only grow stronger.As well, many restaurants and breweries could go out of business because of the coronavirus. Thus, I would expect continued high demand from grocery stores, which is a net positive for BUD.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Undervalued Anheuser Busch Stock Has a Bad Case of Market Irrationality appeared first on InvestorPlace.