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

To see why I am bullish on this company, check out this article: http://bit.ly/xm1QEf

Like its growth potential

We are seeing three major trends play out here:

1) Industry trends: We continue to see the effects of the trade up effect as customers are electing to purchase the pricier more flavorful brands of beer rather than go out to the bar. This is driving growth in the craft beer segment despite negative growth in the beer industry as a whole.

2) Fundamental business: One of the most important things in craft beer sales is the establishment and maintenance of a strong brand name, which Boston Beer has. Their strong free cash flows are more than enough to continue to finance and aggressive marketing strategy. Also, their larger size relative to their craft beer competitors give them a scale advantage that allows for pricing power now, and will allow Boston Beer to beat out their competitors as a pricing war starts in the near future.

3) Short interest as a short term catalyst: Recently there has been a large short interest in SAM. Some see this as a negative for the stock, I take the opposite view. If you look back at when the short interest really starting picking up, it was when the stock was around the 85-90 level. These shorts are now beginning to get frustrated with the recent run-up of the stock price and a great q3 earnings period. (think about it... if you got short at $90, how much longer could you take the hit until you finally realize the stock is going to the moon?)

If anyone is interested in my full research report, shoot me an email.

Expensive stock, but then again, good things cost good money.

preminum products will follow the economy

I'm a beer geek. I've been into the craft beer movement since I reached legal drinking age (and could afford beer better than swill). SAM does things right - they have grown their flagship Lager to a national level, yet kept their craft beer cred by producing quality seasonal beers and assisting other craft breweries.

They produce beers that are "gateway" beers to the craft side of the house while keeping those already in the fold happy with their diverse (yet high quality) offerings. Add to this a pretty strong balance sheet and it's one of the picks I simply can't bet against!

SAM has a good product that has converted a lot of people and resulted in a lot of growth for the business. However, to some degree, they have reached the limits of their expansion with the high price of their beer. With massive marketing campaigns from Coors and Budweiser, SAM only has one direction to go, and that is down.

This one is from the heart, since I love their products. Plus, people buy alcohol in good times and bad ("hey, let's celebrate" / "hey, let's drown our sorrows"). I like their 5 year average sales growth, which is 14.25%. [1]

[1] http://moneycentral.msn.com/investor/invsub/results/compare.asp?symbol=sam

When you get home, what do you usually do? Plus, these guys brewed in the Iron City Brewery in Pittsburgh forever.

Solid brands, founder-led, national growth and distribution opportunities too. Stock has pulled back to below $80 which gives this $1B a nice entry point at 12-times operating profits and 18-times earnings. I'll be interested to see what Jim Koch does with the SAM brand over the next few years.

HG

Grain prices have hurt operating margins at Boston Beer, but when grain prices level off and the bubble bursts, Sam's bottom line will soar. Over sold at this price.

5 yr outperform.

It's the new American beer company after BUD buyout. Still tons of room for growth, and at a price point that puts it in between super premium and the cheapest beers. Great marketing, great brand.

Potential buyout play; LBO even.

I love to drink sam adams so I figure other people will see me drinking it and want to be as cool as me and they will go and buy a 12 pack

IM YELLING CUZ THATS THE WAY I TALK!!!!!! SAMUAL JACKSON!! THATS SOME GOOD F-IN BEER MOTHER FLAVOR!!!

Caps price $84.79

The company reduced its full year expectations to $3.20 to $3.60 from $3.45 to $3.95 “as a result of the reduction in expectations for full year depletions and increased energy costs.” The increased energy costs should be getting better since oil prices dropped recently to $83.40.

Earnings are also dropping due to their fresh beer program. the program was expected to hurt 2011 earnings. I think the program will pay off in time.

The company reported earnings of $2.01, but this included a $0.92 benefit from a recall settlement. Excluding that
net income for the second quarter decreased $1.0 million, or $0.04 per diluted share. The Company estimates the negative earnings impact of the Freshest Beer Program for the second quarter was $0.05 per diluted share.

Even if they hit the low end of guidance for the year, the PE ratio would be 26.49. That would exclude the $0.92 settlement. The growth thesis where SAM capitalizes on the trend toward premium beers in my opinion is still intact. I think 2012 earnings will be better.

Growth as they take market share.

Craft brews are a speculative market I want to be in. Sam is cheap ath 85

its available at most bars in ne