Heineken N V (NASDAQOTH:HEINY)

Excellent value in an outperforming industry. See my article.

I bought shares this past week in this Dutch owned yet very 'global' brewer after reading a couple of analyses here on TMF and also studying the Heineken website. It's a surprisingly old yet complex and forward looking company and I think somewhat under the radar here in the States because it is not on the major exchanges.

Its operations business comprises six segments: Western Europe, Central and Eastern Europe, Africa and the Middle East, Americas and Asia-Pacific. Although not as entrenched in some of these national markets as BUD, SAB and other brewers' brands, HINKY has had significant and leadership presence in many niche markets for decades and according to its CEO in the investor presentation on its website, HINKY is focused to grow significantly in those emerging markets. And although faced with stiff competition for the growing middle class spending, expects to compete favorably.

Heineken is the second or third largest brewer depending on the metrics, next to BUD and SAB, and has grown in recent years through acquisitions in the UK and Mexico (FEMSA brewers), to name just two. Thus, its long term debt is somewhat high although they are steadily paying it down. P/E looks favorable compared to competitors, and the CFO reported this week (on CNBC) that US revenues initiated a turn around in the latter half of last fiscal year and looking forward premium brands will have favorable revenue reports.

Heineken owns, leases and/or manages over a thousand Pubs in the UK through their Scottish & Newcastle Pub company and they are the biggest brewer in the UK. They recently committed to being the 'Lager sponsor' for the 2012 Olympics in London and will receive premium exposure thru those marketing outlets.

Heineken's extensive and premium stable of brands--more than 250 international, regional, local and specialty beers, including Amstel, Birra Moretti, Cruzcampo, Deperados, Dos Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Tecate, Zlaty Bazant and Zywiec, among others gives it wide market appeal. And its cider with brands such as Strongbow Gold and Bulmer's is also a growing niche.

The wide range of brands and HINKY's longtime experience in emerging markets, especially those in Africa make this brewer's potential very attractive to me and as the debt is paid down, I expect it to outperform the market and its value willl be better reflected in its share price in the next two to four years. In the States it is traded on the Pink Sheets and somewhat thinly traded, so I was sure to place a 'Limit order' on my purchase.

who knows. I like the taste.

HINKY's PE ratio is above average for the Beverages (Alcoholic) industry and signals that investors are willing to pay a premium for this stock. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

Looking for a bounce back

people around here, love this crap, i cant stand their beer

Near-term oversold European blue-chips. Not buying just trying to boost my CAPS :) Hey, just being honest.

This account goes contrarian to major free media. This media touts the CEO of Heineken saying he expects the profits to "increase".

going back up to $30

With an economy like this, who couldn't use a drink?

In econimic hardship many turn to beer to help them out

Creating a portfolio based on calling outperform on every alcohol, tobacco, pornography and gambling stock I can find.

Economy stinks

The more people have hard ships, the more they drink.

I don't drink. I just don't. But with the layoffs at my company a few months ago, I sure feel like I could use one. I predict that a lot of people will shortly have similar feelings. Plus, summer's coming! Summer is prime beer time. Memorial day, fourth of july, labor day... what do these things have in common? Beer.

I've put only a year or so as my time frame, because if the economy rights itself, the yuppies will switch back to top shelf martinis, and if the economy gets worse, everyone will switch to Budweiser. This will definitely be a temporary boost for Heineken though.

great imported beer

In times of economic turmoil or economic bliss, you can always count on the sales of alcoholic beverages to be plentiful and the Heine's are quite popular. Even though I think it tastes like stank and wouldn't drink 'em, I am willing to put my money in their hands.

First of all its Heineken. you should go with what you know best and i know Heineken. most small stores dont carry a lot of it however any pub will tell you its a best seller. SAM doesnt have anything on this global brew. worst case hold it and sell it just befor Oct. to let the faster paced investers get a peice of the action and buy it back when the stock drops around X-mass.