Saturday, September 11, 2010

A Great Stock for the Second Half of 2010

Before we begin, please take a moment of remembrance of the attacks on 9/11.  Remember the sacrifice of the FDNY and  NYPD who became heroes that day as the worst disaster in US history unfolded.  Lastly, take a moment for all the victims and their families.  Thank you!

I was doing some research this weekend and I found an excellent trade for the second half of 2010.  The trade is Anheuser-Busch InBev (BUD).  BUD is the best beer stock that is poised to outperform this second half for a couple of reasons:
  • World beer prices are rising
  • BUD has the highest market share that no other beer company comes close to (66% in Argentina, 73% Brazil, etc)
  • Football season is here and what is one of the beers you think of when you think of football?  Bud and Bud Light
  • People buy beer increasingly into the fall and early winter
  • P/E ratio of 19
  • No long term debt
These are huge reasons to get behind BUD.  BUD will profit the most from rising prices.  Football season is always a very successful time for BUD.  Then in a fundamentalist view, a low P/E and no debt.  We are trying to promote stocks that have little/no debt because of the rising issues with debt default.  As far as analysts go, 3 are saying "strong buy", 2 "buy" and 2 "hold".  No analysts recommend SELLING the stock.  Analysts are estimating a huge revenue increase from Q3 2010 to Q4 2010.  To be exact, they predict BUD will report an increase of $26.98B in revenue.  Although, this is an estimate and should be looked at with caution.

At the end of the day, BUD is going to outperform the market and its competitors.  Invest Chief recommends a "buy" of BUD.

Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.


  1. I like this play about BUD. I saw that you post often on Invetorplace. You have kept me from making some bad option trades and I like that you don't go with the garbage that they put out there, I'm a little green. Glad you put up your blog

  2. tripp, definitely, BUD is ripe for a breakout!

    ya I like to go to investorplace to see what they think is good haha. Some of their trades are really bad that even basic research would tell you that they are wrong.

    Wow, thank you very much! That really made my day! Im glad I was able to save you! I am going to continue posting on Investorplace.