Sunday, January 16, 2011

The beer stock as of January 14, 2011

      Well, here we go!  $60,000.00 invested and high hopes for my stocks in the beer industry this semester and this year in general.

     To start my investment discussion, I am going to focus this week on The Boston Beer Co. (SAM).  Everything for this company started in 1984 when Founder and Brewer Jim Koch stumbled across a generations-old family recipe designed by his great-great grandfather. Brewing started in Jim's kitchen and from there he went around to all the local bars in Boston in hopes of spreading his family's wealth of knowledge for a full-flavored and complex beer that we now know as Samual Adam's Boston Lager and what became the start of the craft beer revolution. SAM is traded publicly on the New York Stock Exchange and has seen amazing growths over the course of the last year. For 2010, SAM saw a revenue growth of over 12% and stocks rose from $46.60 to an astonishing $99.53 before year's end which was more than a 100% increase. Stocks are down a little with the holidays being over leaving our Friday January 14, 2011 closing prices at $92.87. With the price of hops staying low and the demand for craft beer continuing to grow tremendously, I expect that it won't be long before stock in SAM  is well over the $100 mark.
       My other two companies for my stock portfolio project would be the beer industry giants of Molson Coors Brewing Co. (TAP) and Anheuser-Busch InBev (BUD). TAP saw stocks drop .48% on Friday from Thursday's closing price to $47.70. BUD's stock also went down in value with a loss of 1.31% bring their closing for Friday down to $57.91.
      Overall, I foresee a successful and recession proof investment that I have made by choosing this industry and only time will tell how accurate that is.

1 comment:

  1. hey - in your first line it says $60,00 instead of $60,000. What can I say - Banker eyes lol!

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