Companhia de Bebidas das Americas (ADR) (NYSE:ABV)

tostradamus (61.78) Submitted: 3/26/2007 1:28:05 PM : Start Price: $8.98 ABV Score: +324.79

Beer.

Crown01 (89.51) Submitted: 3/7/2007 1:50:31 PM : Start Price: $8.38 ABV Score: +352.41

Interest rates in Brazil must drop. It not only that this is trajectory but government is under huge pressure to boost GDP growth which has been mediocre at best, and ridiculously low compared to other emerging economies. Once this happens internal consumption will get a boost. AMBEV is the leading beer and softdrink producer and will continue to surf that wave.

NetscribeConsGds (95.87) Submitted: 1/29/2007 7:52:32 AM : Start Price: $8.34 ABV Score: +356.48

Companhia de Bebidas das Americas (AmBev) through its constant acquisitions over the past several years has now became largest brewer in Latin America in terms of sales volumes and the fifth largest beer producer in the world. The company produce, distribute and sell beer, soft drinks and other non-alcoholic and non-carbonated products in 14 countries across the Americas.

According to Euromonitor International Brazil has become the world’s third largest beer market in terms of volume, with sales of 93.2 million hectoliters. Brazil, the fifth largest populated country in the world is estimated to have three million potential beer consumers to reach legal drinking age each year. Moreover, the governmental efforts to narrow the gap between rich and poor have enabled more Brazilian consumers to experiment with premium beers. This is clearly seen through the rise in premium beer’s volume share and is expected to reach 15% by 2010.

Brazilian GDP is expected to grow by 4% till 2010, which should lead to increased consumer spending power. As a result, volume sales of premium lager are expected to grow by 186% by 2010. This goes well with AmBev, which derives 55% of its total revenue from beer sold in Brazilian market. Moreover, it dominates the Brazilian beer market with a market share of 69%, while its closest competitors Grupo Schincariol and Femsa has market share around 13% and 8% respectively.

The company has seen a consistent top-line growth and a healthy operating margin of 19% for Q306. The company outlook seems bright with substantial growth in Brazilian market. With strong financials and a promising future should make the investors to celebrate with AmBev.

bfmaceio (87.75) Submitted: 12/8/2006 7:36:38 AM : Start Price: $7.81 ABV Score: +386.44

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cockeagledrvr (80.16) Submitted: 10/2/2006 12:40:36 AM : Start Price: $7.52 ABV Score: +399.97

Beer is good.