With SABMiller (OTCPK:SBMRY) in the process of getting taken out by Anheuser-Busch Inbev (NYSE:BUD) (or "AB Inbev"), I've been doing some digging around the beer world to see if there are attractive prospects for reinvesting that cash. As one of the largest brewers in the world, and one that has had some difficulties for a while now, Denmark's Carlsberg (OTCPK:CABGY) was a natural one to research.
At this point, it looks like the market is already well on board with Carlsberg's self-improvement plans. I do see opportunities for Carlsberg to leverage growth opportunities in Asia and repair the Eastern European operations, but the fact remains that a large portion of Carlsberg's business remains tied to slower-growing, highly-concentrated markets in Western Europe. While I am "directionally bullish" on the company itself and I do think it is at least plausible that margins could improve more than I expect, the shares already reflect a lot of improvement yet to be seen in the financials.
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Carlsberg May Find It Hard To Live Up To Market Expectations