You’d think from the screams of outrage over Belgian-owned INBEV’s ad campaign for Bud Light that BUD’s stock price would have been trashed by now. But it has barely moved. Nor has there been much spillover effect from new customers into Canadian owned Molson-Coors, which has been on a steady rise for a month. [TAP]
By contrast, take a look at a 2-month chart for SCHW, or a 26 month chart for JOAN (whose IPO I did trade and made money on).
BUD’s price continues to fall as the boycott continues. So I pulled the fundamentals for the company, wondering if the selling had created an opportunity, which it hasn’t. E.g., the Current Ratio is a worrisome 0.70. Debt/Equity is 1.09. This is a financially weak and vulnerable company with declining revenues that has to get a whole lot cheaper before I’d buy shares.
I also pulled quotes on Anheuser’s 37 bonds, which are holding up suprisingingly well, but aren’t worth buying, because the YTMs don’t even match what T-Bills are offering.
“The market value of Anheuser-Busch InBev, whose fourth bestselling brand is Bud Light, dropped $15.7 billion since April 1…Meanwhile, the other major publicly traded global beer brands have added $3.2 billion in market value during the same time.” [quoted from Yahoo Finance]
I’m happy to report that I’m Bud Light free. None of their stock. None of their bonds, and none of their beer.
I thought I owned a couple of BUD’s bonds, the 4.75’s of '58, because they were still on one of my spreadsheets. But I couldn’t them in my account when I logged into IB.
Whew! One less problem to deal with, not that I’d have taken a loss getting out, because their bonds are holding up well as opposed to the stock, which continues to fall due to mgmt’s stupid ad campaign.
TGT has fallen the last 6 days in a similar situation. I wonder if it’s too late for a short. Could follow the same pattern as BUD.
Lisa,
Skate to where the puck is gong to be, not where it is right now. You’re late on TGT. But there are dozens of other boycotts going on, never mind the whole market-- except for gold-- is a longer-term short.
Yeah, wish I had been paying attention a few days ago.
