Investing in Craft Beer

sam adams is down a lil over 6% today...not sure what news is bringing it down, but it's been a steady grower in a very volatile market...I'd give it another couple days and see if you can get it at a lil deeper discount.

 

I personally think it's risky to put money in beer in the stock market. I think if you want to invest in beer make a donation to a craft brewery that you like that will use your money for the advancement of their brand and the industry. But investing is ultimately dependant on your own goals. If you want to make money, invest in the sock market but not in beer. If you want to fuel your interests and do something slightly philanthropic, go ahead with investing in beer, but do do it in the stock market.

 

There's also BREW, Craft Brewer's Alliance, of Kona, Widmer, and Redhook.

Both are good buys IMO, Kona has a lot of states to expand to, as does Boston Beer Co's, Twisted Tea line.
Widmer's Rotator IPA line is performing well, I've even seen the rotators taking over some former macro draught lines, which is nice, both for the company, and for me as a beer drinker!

 

When you look at buying equities, you have to look at two things...the individual stock and the overall market. Right now the overall market is in the dumps. There's so much uncertainty with whats going on in Europe and with what's going to happen with our election. Up until now, sam has avoided the overall market conditions with exception to a couple dips, but nothing like today's dip of 6.23%. Also with many stocks they don't post earnings til the next fiscal quarter so it being summer has no bearing on how the stock wil act. I would look to buy after a couple more corrections on the individual stock, but not the overall market. Also...this is trading advice not necessarily investment advice. If it's something you think can do great and you believe in, buy it, hold onto it, don't look at your statement for 10 years then open a statement up one day...chances are you'll be way up. Maybe not 250-280% (I think) like it has performed over the last 10 years, but chances are you'll have a good gain.

 

There's already some future expansion priced into the stock.
Not sure how advanced you are, but SAM has a P/E ratio of 22. Meaning that the price of the stock itself is 22x what the stock earns in profit per year.

BREW is cheaper, not only per share price, but also in how much profit the stock makes in relation to how much it costs. a single share costs $8.20 and makes $0.55 in profit per year, giving it a P/E ratio of 15

There is already some expectation of further growth priced into these stocks, but at how fast craft seems to be growing, it still seems like a decent deal to me. If I were to pick one, I'd go with BREW, based on the lower P/E, the expected expansion of the Kona line and what seems like a positive revamping of Widmer's reputation.

 

I agree but you want to break it down to %. % wise...BREW is the better play. BUT it's all about how confident you are in the company and how it's run. It will ease the pain when it's going down and make it feel even better when it's going up.

 

UBS cut SAM to sell is why it is down today

 

So you're suggesting AB, MC, or maybe...

where the hell have you been!

 

While it may be savvy, investing in the walmart of beer is nowhere near interesting.

 

I was going to come back when they fixed/repaired/restored the site.

They outlasted me.

 

They're equal risk...The whole market is a risk, except for some adjustable rate preferred stocks. They have much lower volatility.

 

Put it all in facebook

 

I'd like to think you were just working on expanding the range of your witty Sith quips.

 

I'm not an investor (except I invested in a four pack of Ten Fidy once) and I have no idea how the commodity markets work, but if there's any way for an individual to get in on hop futures I'll bet there's some money to be made. I think demand has got to be on the continual increase. I met a brewer recently and told him how much I liked one of his one-off releases, and he said it was really based on another recipe he'd done a few years ago, but he had to change it for this batch because he couldn't get the hops he'd used the first time.