The King of Beers.

TripleH68 · #1 07-28-2005, 02:17 AM

What is happening to my BUD?

Did I wait too long to get out?

Sniper · #2 07-28-2005, 11:46 AM

Beer sales are down this year!

Must be all the college kids sitting in front of their computers playing poker, instead of out partying all night [img]/images/graemlins/wink.gif[/img]

The Don · #3 07-28-2005, 07:26 PM

[ QUOTE ]
Beer sales are down this year!

Must be all the college kids sitting in front of their computers playing poker, instead of out partying all night [img]/images/graemlins/wink.gif[/img]

[/ QUOTE ]

Not my fault... I am drinking while playing [img]/images/graemlins/smile.gif[/img] (normally PBR though)

Sniper · #4 07-28-2005, 11:51 PM

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Not my fault... I am drinking while playing (normally PBR though)

[/ QUOTE ]

Drinking while playing = -EV

James Boston · #5 07-28-2005, 07:38 PM

They're performing on par with the sector, so I think they'll gain the most when beer sales improve. Ride it out.

AceHigh · #6 07-28-2005, 09:46 PM

[ QUOTE ]
They're performing on par with the sector, so I think they'll gain the most when beer sales improve. Ride it out.

[/ QUOTE ]

This is terrible advice, why would you stay in a down sector?

James Boston · #7 07-29-2005, 03:28 AM

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This is terrible advice, why would you stay in a down sector?

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I have no problem waiting out cyclical trends. If you think the sector has no future, then that's a legitmate arguement. Otherwise, please tell me why BUD won't out-perform the sector, once the sector improves.

AceHigh · #8 07-29-2005, 07:40 AM

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If you think the sector has no future...Otherwise, please tell me why BUD won't out-perform the sector, once the sector improves.

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Obviously the sector has a future, you are just in the wrong part. The money that to be made in this sector is in some of the wine and liquor companies. The trend is towards upscale drinking and away from cheap beers.

Also, if a stock is struggling, I like to leave it and wait until it starts to perform to come back into it. Yes, I will miss the bottom, but this way I'm not stuck in an underperforming stock. Don't stay in a stock waiting for it to turn around, find a stock that has turned it around.

Sniper · #9 07-28-2005, 11:54 PM

[ QUOTE ]
They're performing on par with the sector, so I think they'll gain the most when beer sales improve. Ride it out.

[/ QUOTE ]

Actually, they are underperforming their industry group (Beverages - Alchoholic) by a fairly wide margin over the last 52 weeks.

James Boston · #10 07-29-2005, 03:38 AM

[ QUOTE ]
Actually, they are underperforming their industry group (Beverages - Alchoholic) by a fairly wide margin over the last 52 weeks.

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You have to understand, I'm with BUD for the long haul, so I really don't care how they compare to the industry as far as trading goes. Their margins are better, their EPS is better, and their P/E is better (this came from just a quick glance at Yahoo Finance). They account for nearly, if not more, than half of domestic beer sales. You're going to be hard pressed to convince me that they lack staying power...now I must drink some BUD.