This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How to Play the World Series

Stocks in this article: DKS NWS PEP

Liquid Refreshments

You'll surely require some liquid refreshments for the World Series. Let's start with the suds. Anheuser-Busch InBev (BUD) was formed by the acquisition of the old Anheuser-Busch beer company by InBev, a Belgian company. In order to fund this $52 billion purchase, InBev issued nearly $45 billion in debt. Currently, the company carries about $55 billion in debt, quite a large load for a $135 billion market-cap company. The company was delisted in the U.S. markets immediately after the acquisition and then relisted in July 2009. It has issued only one quarter's worth of combined results so far.

At this point in time, I do not believe that there is enough data to make more than a guess on Anheuser-Busch InBev. Furthermore, I am reluctant to recommend purchasing a company with a huge amount of debt.

Molson Coors Brewing (TAP) brews, sells and distributes many well-known beer labels, including Molson, Coors, Miller High Life, Amstel Light and Asahi, as well as other lesser-known brands. Product-wise, Molson Coors' beers compete directly with many of the Anheuser-Busch labels, such as Budweiser and Michelob.

Sales growth has been rather spotty over the past few years, with 5.9% growth in 2007, an 8% loss in 2008 and 2% growth in the first half of 2009. Earnings per share have had far more variation, increasing 31.5% in 2007, declining 23.9% in 2008 and rising 118% for the first half of 2009. Gross profit margins for Molson Coors have been in a steady decline over the past few years, going from 46% in 2007 to 40% in 2008 and so far 39% in 2009. That is not a trend I'm excited about.

One of my favorite beers and beer companies is Boston Beer (SAM), which was founded as a local brewery in 1984 and has since gone national and, to a less extent, international. Boston Beer produces hand-crafted beer under the Sam Adams brand name and flavored malt beverages under the Twisted Tea label. The company manufactures year-round beers such as Sam Adams Boston Lager as well as a variety of seasonal, specialty and flavored beers. All beers are sold either in brown bottles to ensure full flavor and decrease spoilage or in draught for bars and restaurants.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs