{"id":476288,"date":"2017-04-24T13:47:08","date_gmt":"2017-04-24T13:47:08","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=476288"},"modified":"2017-04-24T13:47:08","modified_gmt":"2017-04-24T13:47:08","slug":"youd-have-to-be-drunk-to-own-this-beer-stock-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=476288","title":{"rendered":"You\u2019d Have to Be Drunk to Own This Beer Stock"},"content":{"rendered":"
\"boston-beer-company-1\"<\/a><\/div>\n

By Alexander Green<\/a><\/span> <\/p>\n

<\/div>\n

After a round of golf about 20 years ago, a friend invited me to taste a draft beer he’d just discovered.<\/p>\n

It was Samuel Adams Boston Lager.<\/p>\n

I took a sip and looked at him with a grin. \u201cThat may be the best beer I ever tasted,\u201d I said.<\/p>\n

(This, of course, was long before the nation had 5,300 craft breweries turning out a slew of delicious, innovative brews.)<\/p>\n

I told my buddy I had just one question: \u201cIs the company that makes this publicly traded?\u201d<\/p>\n

Indeed, it was. I bought 2,000 shares of Boston Beer (NYSE: SAM) at the market open the next morning.<\/p>\n

It was a good move. In the years that followed, my shares doubled, doubled again, and doubled many, many more times.<\/p>\n

But this might be the last stock I’d buy today. In fact, if you’re looking for potential short candidates, you might start with Boston Beer.<\/p>\n

Here’s why\u2026<\/p>\n

Most investors know to take optimistic statements by company founders and officers with a grain of salt. They have a vested interest in making a positive outlook sound stellar and a lukewarm one temporary or easily surmountable.<\/p>\n

Contrast that with a New York Times op-ed piece this month by Jim Koch, founder and chairman of Boston Beer.<\/p>\n

He laments the consolidation that has taken place in the brewing industry in recent years, pointing out that 90% of domestic beer production is actually in the hands of two foreign-owned brewing giants: Molson Coors and AB InBev.<\/p>\n

(Most beer drinkers are blissfully unaware that their \u201cindependent\u201d craft brews \u2013 like Terrapin, Goose Island and 10 Barrel \u2013 are actually subsidiaries of these behemoths.)<\/p>\n

Koch complains that this brewer’s duopoly has led to biased wholesalers and distributors who give superior promotion, visibility, shelf space and marketing support to Molson and InBev products.<\/p>\n

In his view, the government’s unwillingness to use antitrust enforcement against these two undermines the economic interests of American brewers.<\/p>\n

He decries the new beer landscape, one that \u201cis heavily tilted toward giant foreign-owned conglomerates\u201d and even warns that \u201cwe may be witnessing the beginning of the end of the American craft beer revolution.\u201d<\/p>\n

If you wondered why Boston Beer \u2013 in the midst of a rip-roaring bull market \u2013 is down from a high of over $300 a share to around $138, you now have your answer.<\/p>\n

[iu-adbox]<\/p>\n

And given this dour outlook from the founder and former chief executive, why would any sober investor buy the company’s shares?<\/p>\n

Especially given the fact that insider ownership in the company is in decline, and Koch himself is a regular seller of the stock.<\/p>\n

(Of course, when it really hits the skids, he can point out that he warned us all in his New York Times op-ed column.)<\/p>\n

Insider selling is not always a reliable indicator. There are reasons that an officer or director might sell that have nothing to do with the outlook for the company.<\/p>\n

They might be diversifying their portfolio, or buying a new house, or putting kids through an expensive private college.<\/p>\n

(Contrast that with insider buying, which has no explanation other than that the officer or director \u2026read more<\/a> <\/p>\n

Source:: Investment You<\/a><\/p>\n

The post <\/a>You’d Have to Be Drunk to Own This Beer Stock<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Alexander Green After a round of golf about 20 years ago, a friend invited me to taste a draft beer he’d just discovered. It was Samuel Adams Boston Lager. I took a sip and looked at him with a grin. \u201cThat may be the best beer I ever tasted,\u201d I said. (This, of course, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/476288"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=476288"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/476288\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=476288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=476288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=476288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}