I'll take losses and close BUD position. Constellation Brands has dropped in price, and I'll take a few shares now.
BUD should work out okay - it's so dominant in the US market and has such good financial numbers. At current price, a buyer can get the stock under what Warren Buffett started his position at, I am guessing. And who wants to bet that Mr. Buffett's wrong?
OTOH, it might take some time and patience for BUD to work out. The beer market shows at best lackluster growth. More and more people seem to be switching to spirits or wine. I notice more television stations with ads for hard liquor. Given the many brands that STZ has, it would seem that the fashion favors STZ.
STZ doesn't have anywhere near the good financial numbers that BUD can put up, but it does show better sales growth. If the beer market does okay, I expect STZ's Corona to participate. An improvement in BUD's fortunes, doesn't mean to me that STZ's sales and earnings must consequently suffer. I'll guess that if STZ can manage its acquisitions, doesn't overpay for future ones, and can operate its far-flung empire, the stock ought to be able to increase back to new highs.
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