The King of Beers.
 

What is happening to my BUD?

Did I wait too long to get out?

Re: The King of Beers.
 

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]

Re: The King of Beers.
 

[ 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)

Re: The King of Beers.
 

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

Re: The King of Beers.
 

Get out. Beer sales are down because wine and liquor sales are up. This is trend that will probably continue for the forseeable future.

There are too many good stocks and the market is too good to leave money in medocre stocks. (I would never leave money in an underperforming stock)

Re: The King of Beers.
 

[ 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?

Re: The King of Beers.
 

In my local deli in Brooklyn the beer area is filled with brews from Poland Russia ect. There is alot more competition. The rich are getting richer and poor getting poorer. Rich don't drink as much beer and the beer they do drink is not Bud. This is why Wal*Mart is not doing as well. TAP might do better. LQU is interesting, but the word is out.

Re: The King of Beers.
 

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

[/ QUOTE ]

Drinking while playing = -EV

Re: The King of Beers.
 

[ 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.

Re: The King of Beers. - BUD analysis
 

Here's my take on BUD: Dump it, there are better opportunities. It will like underperorm the S&P over the next 6 months. Might make a more compelling buy if it drops to the $40 range and finds some support.

Stock Type: Large Cap Value.
Current Price: 44.77

Technically, BUD is trading below both its 50 day and 200 day moving averages, both of which are sloping down. A clear red flag! The stock is trading just above its 52 week low.

The Chart pattern is clearly a bearish trend, since mid-2004, when it broke down thru a long term uptrending channel.

IBD stock checkup ranks BUD a D+ in a D rated group. The stock has a relative strength rating of 14 (very low) and an Accumulation/Distribution rating of E (very heavy institutional selling).

Standard & Poors rates BUD a Hold with a 12 month price target of 49 (expect they will follow everyone else and lower this shortly). They show no confidence in BUDs current marketing strategies, but looking out to 2006 they expect investments in China to start benefitting the company.

Bank of America - Cut price target to $42. Banc of America Securities said Anheuser-Busch was likely to continue facing trouble on pricing & volumes competing against wine, spirits, and imported beer brands. "This will take time and money to fix," BofA added in a research note. The brokerage has a "neutral" rating on the company's stock.

Smith Barney Citigroup - Downgraded from Hold to Sell, with a price target of $41. Smith Barney said there is more downside risk to the stock "and at best, the stock is dead money over the next 12 months."

Goldman Sachs - lowered fair value estimate to $42.

Insider transactions - net sales over the last year, including recent sales by both the CFO and Controller. When the finance guys are selling, its generally not a good sign!