It's Friday, Time for Beer!
I have seen a number of write-ups on Anheuser-Busch InBev (BUD) lately. As much as I hate to admit it (it's fine if Budweiser wants to sell out to a foreign company, but then don't continue to go around touring yourself as a great American brand) this company is going to be one massive cash cow.
Anheuser-Busch InBev should have no trouble paying down its massive slug of debt. The more it pays off, the better its earnings will become.
Plus the combination of these two companies will likely result in greater cost synergies than was originally expected. InBev's management has a history of effectively squeezing cost out of acquisitions.
At some point, perhaps in late 2011 the company will likely begin to return money to shareholders via a larger dividend and buybacks.
As an added bonus, one wouldn't think so but this behemoth is actually relatively under-followed, partly as a result that its U.S. ADR only started trading less than a year ago.
Perhaps I just have beer on the brain because it's almost Happy Hour, but I have decided to add BUD to my CAPS portfolio this afternoon at just under $48/share.