The Geared Investor

Anheuser / InBev: Cooler Heads Prevail

I'm telling you, the BUD and YHOO deals are a black eye for America. YHOO less so than the takeover of our largest brewery by a foreign country. I went on a rant in a post of mine a couple of day s ago, and I still hold that feeling. I also feel that InBev might be making the move at the wrong time if this move does go through. If the price of commodities to produce beer continues to increase, and InBev has to eat $70 per share, the first few quarter results could be a catastrophe. I think shareholders will understand in the beginning, but the long term for all stocks centrally based around commodities will have to lower their earnings forecasts to stay in the black.