Posted on 06/07/2023 4:12:23 AM PDT by cotton1706
Well, the decision to short Anheuser-Busch InBev SA/NV (BUD) stock recently remains a winner. The stock recently broke through support, and while value buyers seem to be trying to step in here, the controversy surrounding this company has not slowed down.
Perhaps memories will be short, and the conservative backlash over their marketing and branding deal with Transgender influencer Dylan Mulvaney may subside later this year. However, it seems like the damage right now is setting up to be permanent. Take a look at the comment sections on the articles covering this controversy. So many have said they are making a "permanent switch," or will "never buy again."
Now, this could be like the NFL, where National Anthem protests led to many saying they would boycott forever, only to have most viewers return. But the NFL does not have much in the way of real competition. Anheuser-Busch has many. The damage to the brand is palpable. And shares continue to be under pressure, to the delight of those of us who profited from being short.
We still see at least another 10% downside here, and more if sales data continues to be weak. Recent data has suggested sales are indeed plummeting, and we have been covering the drama. We believe a bearish take remains the best outlook here.
Folks, from a stock perspective only, Anheuser-Busch shares look to head lower. The stock broke its support $56-$57 range and that suggests, in our opinion, that shares will fall to $50 or below.
The market as a whole has been holding up, and that may be a small saving grace for the stock. But if this market as a whole turns lower, we cannot image BUD stock holding up at all.
(Excerpt) Read more at seekingalpha.com ...
Back before Covid, it was bumping $100 a share. So it’s fallen a good bit over three years. The only plus I can see...it does pay in the range of 1.5-percent on the dividend. Whether it stays there or not....unknown.
I’ll suggest that it falls down into the mid-40s and someone makes a hostile take-over attempt...to buy 51-percent, and rebrand/rename them.
Why is ‘transgender’ capitalized? Quit reading there, click.
How ya gonna keep 'em drinkin' your swill after they taste real beer?
I know someone that runs a liquor store…sent back all Bud Lite in stock and cancelled all future orders.
The dividends won’t hold after the loss in volumes and revenues.
This would then prompt more selling, reducing the stock price.
As to a hostile takeover - two points against that
1. It is a toxic brand name now and owns toxic brand-names. No company wants to be tainted with that
2. Anyone who could afford to buy them would create a monopoly in some markets. This would not be allowed by anti-monopoly regulators.
And if (s)he did that from a purely financial point of view, not moral, then that would also make sense.
Keeping commodity beer (which probably also is low profitability per bottle/can for the store) occupying valuable space is wasted money.
Every inch of shelf space is valuable. Once lost, it’s a fight to take it back from others.
đź‘Ť
I don’t understand...
...why can’t the reprobates just force us to buy Bud lite?
Bud is supposed to report quarterly earnings on July 27. I expect it will not be as good as same time last year.
https://www.nasdaq.com/market-activity/stocks/bud/earnings
Bud Lite is less than 2% of sa;es. From what I read in the WSJ days ago InBev the parent picked up sales to offset in some of their other brands. The 1.5% dividend is nothing great and the share price was lower a year ago. If anything if it falls below 50 I might buy it.
Reason was both on moral grounds and financial situation…store shelves filled now with many other alternatives (not so much Miller though).
Anheuser-Busch InBev is controlled by Belgian families Vandamme, de MĂ©vius and de Spoelberch, who as of 2015 owned a combined 28.6% of the company, and Brazilian investors Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles, who owned 22.7% through their private investment firm 3G Capital.
This, the stock available to the public is a minority interest.
There won’t be any hostile takeover.
Parenthetically, any buyer of that stock is simply riding the cottails - up or down - of the majority owners’ whims.
Switch to scotch or ouzo.
The best solution at this point is for AB to retire the Bud light brand and rebrand it as “Bud Trump”
It will sell on a faster pace then their sales went down with tran-freak
It’s amazing to watch a brand die in less than a year. Hope those ESG points were worth it. They took their mark.....NWO demanded it...
And we are right again.
Politics should be left out of everything. You’d think that would be obvious since it pretty much destroys everything it touches.
AB, here are the terms of your surrender:
1- Fire the Bit*h and all others responsible for the Mulvaney decision.
2- A groveling apology for your horrendous lack of judgement in catering to trans/gay child groomers.
3- End all present and future trans/gay pride support activity and donations.
Then we’ll talk.
I immediately stopped drinking Heineken beer (8 years ago) when they hired the filthy degenerate “Flip My Meat” homosexual Neil Harris.
Same with Volkswagen who were marketing the Rabbit car (in the 1990’s) as the homosexual car of the future.
Same with the Target stores who have been bragging about their associations with pedophile homosexual child rapist.
Now InBev can go to hell along with Fox News!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.