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.
Read more here:
Carlsberg May Find It Hard To Live Up To Market Expectations
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