The Boston Beer Company, Inc. (NYSE:SAM)

CAPS Rating: 4 out of 5

The Company is engaged in the business of producing and selling low alcoholic beverages primarily in the domestic market and, to a lesser extent, in selected international markets.

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Player Avatar lennysims (95.94) Submitted: 6/29/2012 12:55:26 PM : Underperform Start Price: $121.43 SAM Score: +20.31

Micro-boo
"As a beer aficionado, I can appreciate Boston Beer's (NYSE: SAM ) attempt to move away from conventional mass produced beer into something that I would happily share with my friends. Unfortunately, one of the things I wouldn't remotely consider sharing with them right now is Boston Beer's stock, which seems to be, pun fully intended, a bit frothy.

Although most of the conventional brewers have struggled with high unemployment rates, Boston Beer has managed to thus far buck that trend. But there's only so much carbonation you can fit in this bottle. Valued precariously at 24 times forward earnings, 7 times book value, and not currently paying a dividend, unlike many of its peers, there are simply too many risks built into its stock at these levels. As long as unemployment rates remain high, buying this stock near $100 is like playing with fire." (Sean Williams)

SAM is a $60 stock trading at $120, there is no way I am paying an extra $60 for management and 10% projected growth.

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Member Avatar lennysims (95.94) Submitted: 8/2/2012 10:26:23 AM
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Have made this a top pick am in the process of buying some March $90 puts.

Member Avatar brightsideLP (95.63) Submitted: 8/2/2012 12:34:40 PM
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thats crazy talk. cant you find something better than this moated company ? huge global expansion is coming and this is the last great AMERICAN beer company (besides Bell's).

You're nuts if you think this is a good short. This is the type investment people can buy and hold onto forever (or until the acquisition comes). Its market cap is the perfect size to jump on board and enjoy the decade long expansion.
You might make money on your puts because I think the entire market is coming down....but this is one of the better 10 year plays out there imo

Member Avatar lennysims (95.94) Submitted: 8/3/2012 12:52:03 PM
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Put was cancelled. Not even close to what I was willing to pay brightsideLP. The stock is overvalued just the same. I totally agree with you that it is a long term winner and maybe even at this price, but you would most likely still be better off with one of the other American brewers; just because they have a dividend. I personally feel that the entire brewing industry is overvalued, except BUD, which I have at even.

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