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Pot Sales Don't Hurt Beer Business: StockTwits.com

NEW YORK (TheStreet) -- Legal marijuana isn't hurting the beer business. Shares of Molson Coors Brewing Company  (TAP - Get Report) hit an all-time high today of $71.33.

US beer barons $TAP and $BUD shrugging off weed legalization trend and hitting new highs. ? David Shvartsman (@FinanceTrends) Jun. 10 at 01:00 PM

Last month, the company said after-tax income rose 115.2% in the first quarter of 2014 from the prior year to $102.2 million. It saw such profits despite marijuana becoming legal, or decriminalized, in 17 U.S. states. 

"@SL50: Beer on the all-time high list: $TAP $BUD http://stks.co/e0duT" ? TraderRooster (@TraderRooster) Jun. 10 at 11:15 AM

Of course, marijuana is far from accessible, despite decriminalization. It is still treated life a minor traffic violation in most states that have decriminalized the drug, meaning that police can ticket someone for marijuana use and charge a fine. So the limited availability could be one reason why the beer business has not seen any negative impact.

Some investors speculated that Molson's stock was hitting new highs not just on sales and profit performance, but also on merger rumors and management bullishness. Societe Generale analyst Andrew Holland told Bloomberg in a telephone interview, published today, that Molson may consider a purchase of MillerCoors, its joint venture with Anheuser-Busch InBev  (BUD).

Something may be brewing at $TAP . Insider buying, unusual call activity and lately, strong volume... ? Gabriel Haro (@gharo34) Jun. 10 at 10:48 AM

Analysts are bullish on the stock. In the past month, six analysts boosted price targets or upgraded the stock, according to the Analyst Ratings Network.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

 

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