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Posted

Hi HalfMeasure - I like them both.  Re MO - its more diversified than PM - e.g. Anheuser holdings, wine, etc. - and its cannabis moves are interesting.  RE PM - the currency impact is something I think about quite a bit and I like their reduced-risk products.

 

Thanks Lance, appreciate the color.

Posted

Almost out of cash now.

 

Also a bit early perhaps?

 

The situation is interesting: there's a number of large (mega) cap good and great companies that are not very expensive. Some even cheap(ish).

But also a lot of moaty companies still very highly valued. (That's just from the universe I track... no idea about the companies I don't track.)

 

So on one hand, it would seem we should not get another 20+% drop but on another hand it would seem we could.

 

FWIW, I think markets will rally after the year-end dumping of "losers" ends. So in January. But then there's politics, tariffs, etc., so my prediction is possibly not worth a share of BAC.

Posted

Bought more TAP, not much cash left after selling all my winners already - and dumping most in ADS. Great timing. :)

 

Is Molson Coords Brewing really trading at 6x FCF?

Posted

Almost out of cash now.

 

Also a bit early perhaps?

 

The situation is interesting: there's a number of large (mega) cap good and great companies that are not very expensive. Some even cheap(ish).

But also a lot of moaty companies still very highly valued. (That's just from the universe I track... no idea about the companies I don't track.)

 

So on one hand, it would seem we should not get another 20+% drop but on another hand it would seem we could.

 

FWIW, I think markets will rally after the year-end dumping of "losers" ends. So in January. But then there's politics, tariffs, etc., so my prediction is possibly not worth a share of BAC.

 

Yes, too early. however, the selling had been relentless, almost like October 2008. I think a lot of stocks are cheap, unless the economy falls apart.  I don’t think that’s likely. I do agree that  the selling has more to do with momentum than with fundamental issues.

Posted

Bought more TAP, not much cash left after selling all my winners already - and dumping most in ADS. Great timing. :)

 

Is Molson Coords Brewing really trading at 6x FCF?

Nah, 12 pct FCFE yield mas o menos (they guide 1.5b FCF plus/minus 10 pct). Come mid 19 their leverage is on target and I expect a large payout.

Posted

Bought more TAP, not much cash left after selling all my winners already - and dumping most in ADS. Great timing. :)

 

Is Molson Coords Brewing really trading at 6x FCF?

 

I’m not familiar with the company, but what about this trend?

 

Icehouse

> Sales change (2012-2017): -8.9%

> Barrels shipped in 2017: 1.3 million

> Market share: 0.6%

 

Coors Light

> Sales change (2012-2017): -11.1%

> Barrels shipped in 2017: 15.9 million

> Market share: 7.6%

 

Miller Lite

> Sales change (2012-2017): -12.3%

> Barrels shipped in 2017: 12.8 million

> Market share: 6.2%

 

Keystone Light

> Sales change (2012-2017): -15.1%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Ice

> Sales change (2012-2017): -16.8%

> Barrels shipped in 2017: 1.2 million

> Market share: 0.6%

 

Miller High Life

> Sales change (2012-2017): -21.5%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Light

> Sales change (2012-2017): -43.7%

> Barrels shipped in 2017: 625,000

> Market share: 0.3%

 

Miller Genuine Draft

> Sales change (2012-2017): -50.5%

> Barrels shipped in 2017: 680,000

> Market share: 0.3%

 

Source: https://247wallst.com/special-report/2018/12/21/beers-americans-no-longer-drink-5/2/

Posted

There are now almost 7,000 microbreweries in the US

 

https://www.brewbound.com/news/7000-breweries-operate-u-s-2018

 

accounting for about 12% of beer sales and growing by double digits.

 

Bought more TAP, not much cash left after selling all my winners already - and dumping most in ADS. Great timing. :)

 

Is Molson Coords Brewing really trading at 6x FCF?

 

I’m not familiar with the company, but what about this trend?

 

Icehouse

> Sales change (2012-2017): -8.9%

> Barrels shipped in 2017: 1.3 million

> Market share: 0.6%

 

Coors Light

> Sales change (2012-2017): -11.1%

> Barrels shipped in 2017: 15.9 million

> Market share: 7.6%

 

Miller Lite

> Sales change (2012-2017): -12.3%

> Barrels shipped in 2017: 12.8 million

> Market share: 6.2%

 

Keystone Light

> Sales change (2012-2017): -15.1%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Ice

> Sales change (2012-2017): -16.8%

> Barrels shipped in 2017: 1.2 million

> Market share: 0.6%

 

Miller High Life

> Sales change (2012-2017): -21.5%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Light

> Sales change (2012-2017): -43.7%

> Barrels shipped in 2017: 625,000

> Market share: 0.3%

 

Miller Genuine Draft

> Sales change (2012-2017): -50.5%

> Barrels shipped in 2017: 680,000

> Market share: 0.3%

 

Source: https://247wallst.com/special-report/2018/12/21/beers-americans-no-longer-drink-5/2/

Posted

Bought more TAP, not much cash left after selling all my winners already - and dumping most in ADS. Great timing. :)

 

Is Molson Coords Brewing really trading at 6x FCF?

 

I’m not familiar with the company, but what about this trend?

 

Icehouse

> Sales change (2012-2017): -8.9%

> Barrels shipped in 2017: 1.3 million

> Market share: 0.6%

 

Coors Light

> Sales change (2012-2017): -11.1%

> Barrels shipped in 2017: 15.9 million

> Market share: 7.6%

 

Miller Lite

> Sales change (2012-2017): -12.3%

> Barrels shipped in 2017: 12.8 million

> Market share: 6.2%

 

Keystone Light

> Sales change (2012-2017): -15.1%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Ice

> Sales change (2012-2017): -16.8%

> Barrels shipped in 2017: 1.2 million

> Market share: 0.6%

 

Miller High Life

> Sales change (2012-2017): -21.5%

> Barrels shipped in 2017: 3.5 million

> Market share: 1.7%

 

Milwaukee’s Best Light

> Sales change (2012-2017): -43.7%

> Barrels shipped in 2017: 625,000

> Market share: 0.3%

 

Miller Genuine Draft

> Sales change (2012-2017): -50.5%

> Barrels shipped in 2017: 680,000

> Market share: 0.3%

 

Source: https://247wallst.com/special-report/2018/12/21/beers-americans-no-longer-drink-5/2/

Well, that is definately the bear case and somewhat consensus I think, but they've been good at making up for volume declines through economies of scale and pricing. Scale is what truly matters which is why M&A can create a lot of value for the big guys (basically Molson and AB InBev). Come a recession I think they'll do better than craft and perhaps they can pick some subscale brewers up on the cheap.

Posted

I don’t think a recession can reverse the trend towards craft beer. These brands are dead. Maybe it’s my circles, but no one brings Miller or Bud to a party any more. There best bet is develop or buy craft beer brands themselves, but they don’t come cheap, but I agree they may become cheaper in a recession. The problem is that the fragmentation probably reduces the profitability of the business permanently.

Posted

Adding to Berkshire again this morning.  Approximately $470 Billion market cap.  Could see some opportunities if we really do enter a protracted bear

Posted

Adding to Berkshire again this morning.  Approximately $470 Billion market cap.  Could see some opportunities if we really do enter a protracted bear

 

I also got some for the first time in a very long time. Not too much.

Posted

Adding to Berkshire again this morning.  Approximately $470 Billion market cap.  Could see some opportunities if we really do enter a protracted bear

 

Buy BRK or buy banks/AAPL that BRK is holding/buying... Eh decisions, decisions.  8)

 

Edit: just for fun, potentially interesting potentially buy list: AMCX, AAPL, BAC, BRK, DIS, EXPE, FB, FDX, GOOGL, IPGP, JPM, CVS, WBA, MSGN, NVDA, OTCM.

Posted

I used some more of the school $$$ to bump BRK.B up to 18% today.

 

---

 

Oh, and I called the top back in November!

(unfortunately as I was buying.)

 

I'd like a segment on CNBC & some OPM.

 

I'm all in with a purchase of CLB today.

 

edit: also added some MO Jan 2021 $50 calls using the supposedly sacrosanct skool funds.

 

The cash I have left is sacrosanct (no, really) and will be used for a bachelors degree unless BRK takes a big dive, in which case I'd probably add to the position & start busking to cover the missing cash  ???

 

---

 

[[[ This should be a sufficient signal for ALL intelligent investors to marshal their cash for a huge downturn in the markets. ]]]

 

Posted

Anyone remember that Santa Claus rally we were supposed to have? Seems like the jolly fat guy just delivered a yuge lump of coal. Or is it lead? S&P is 6 points from bear market. Merry Christmas!

Posted

Anyone remember that Santa Claus rally we were supposed to have? Seems like the jolly fat guy just delivered a yuge lump of coal. Or is it lead? S&P is 6 points from bear market. Merry Christmas!

 

It could be a present for those sitting on cash. Merry Christmas!

Posted

Anyone remember that Santa Claus rally we were supposed to have? Seems like the jolly fat guy just delivered a yuge lump of coal. Or is it lead? S&P is 6 points from bear market. Merry Christmas!

 

I think the Santa Claus rally gone off the wheels (reins?) and become the Christmas Crash of 2018. I hope that sleigh has airbags!  ;D

Posted

Anyone remember that Santa Claus rally we were supposed to have? Seems like the jolly fat guy just delivered a yuge lump of coal. Or is it lead? S&P is 6 points from bear market. Merry Christmas!

 

It could be a present for those sitting on cash. Merry Christmas!

 

Let's just say I did a bit of Christmas shopping today  ;)

 

Merry Christmas!

 

Added to BAC and MU positions.

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