shadrak

Anheuser / InBev: Cooler Heads Prevail

Concerning my first comment above. Certainly with stagnant AB income and profitability, the present price is good for AB. I have also had a closer look at Inbev report and it's dynamism, and compared it to AB and it's flat growth. I would say that on a 10 minute stroll through Inbev 2007 Report, and with a very brief view of their cash-flow, from the point of view of Inbev it would also seem a good deal financially even at the price now being talked about., and thus not too expensive. With only 24% of Anheuser sales being made internationally, you can see why Inbev want it. Bud does have a distinctive and definitely market grabbing taste to it in my tasting experience, especially served ice cold, and so has a "unique selling proposition" in it's taste alone, how the US Branding is played on is the work of Inbev, who say they are in the business of building brands.. The question is now in my mind, is it better to keep Bud a localised beer, but US owned, or a world wide, world renowned beer of the US, but internationally owned. That's an emotional question which at the moment I do not have a strong north on though understandably plenty of others do. True, you loose US control, but you gain much wider fame for US taste. Difficult question.

Anheuser / InBev: Cooler Heads Prevail

At that sort of premium, you are talking about making Buddweiser being a world wide substitute for water. There seem to be a lot of expensive deals around even allowing for the depressed market valuations. Dow was another one. I'd also like to see them squeeze enough money out of that company to make it a five year DCF return. Of course with so much cheap non-bank money around, and if you are looking at ten years to recover your costs before going into profit, which I think these kinds of deals are after, then you're on to a winner.

What If What Economists Taught Us Is Wrong?

I absolutely and completely and utterly agree with this article in every single word, letter, and full stop. Where on earth to people get the idea that money supply and credit have no bearing on economies??? it's utterly, utterly, incredible!!! Haven't they heard of money pull inflation! Of course they have. they just got pulled into the Thatcher mesmerism that still exists today. If a price goes up and there is an inelastic supply, then it means there is more money than asset. Will all practicing economists, central bankers, theorists, and researchers, please contact brain, work things out for themselves, and try and break the spell of the Thatcher mesmerist drone. I didn't leave politicians out accidentally. I don't like asking the impossible.