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

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.

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

Boston Beer Company is financially solid, but truth be told I'm just going with this one because I like their products. If you can't root for an upstart beer company that has done well for itself... well, then I just don't want to know you.

I'm a branding junkie and what can I say, when drinking one of their winter, summer brews or guzzling a classic old school Sam, I feel like I'm drinking the same 100% pure Patriotism that founded this great nation. "Beer is proof that God loves us" -- Ben Franklin. I think he meant this beer.

Great beer with a management team geared towards ensuring a quality product meets consumers. Fresh beer program will be a drag on earnings untill the kinks are ironed out, then expect the big brewery with the microbrew taste to show shareholders some love. I am not currently invested due to restraints of Roth IRA, but would love to have the free cash to pick up shares at $80/share.

Beer drinking trend

mmmmm.....cold frosty beeeer (said with loving Homer Simpson voice). Plenty of growth left for the premier craft beer in the country. Lots of competition too, but they seem pretty adapt their taps and bottles into consumers hands. Keeping an eye on cost and competition, but cautiously optimistic for a solid return going forward.