Anheuser Busch Companies Inc. (BUD-N)

Range-bound to $110. Hold it here. But it's got plenty of chance to go up. He likes it.

The chart back to 2012 shows a move from $50 to $110. Now it is coming down. There has been a lot of volume at the higher range. He thinks there could be a lot of profit taking going on will the recent pullback. This is technically a bad sign that could trigger further selling down to $85. It needs to make a new high above $105 before he would become a buyer.

The beer business is very competitive and very tough. This is a “steady Eddie”, good dividend type stocks, but you need to have growth in your portfolio because we haven’t seen any inflation yet.

(Market Call Minute.) This would be a Buy on weakness, and we are now at that weak point.

Beer companies are getting bigger and bigger as quick as they can. This is more likely to be a buyer than being bought.

Anheuser Busch (BUD-N) or Dollar Tree (DLTR-Q)? Given the choice, he would probably go with Anheuser Busch. Consumer spending has been a little bit suspect and he would tend to shy away from the purer play of consumer spending. Anheuser Busch would be more of a staple as opposed to a discretionary.

This is the wrong time of year for beer stocks and the volumes are down anyway. Demographic is younger people not drinking beer. BUD sees volumes picking up next year. These names are seen as a little more growth.

A very nice healthy dividend of 2.2%. Continental Europe has helped them because of their suffering as well as opportunities to celebrate by being out of recession. Feels the 12.2X current earnings valuation is better than some of its closest peers. You want to look at this trading at the lower end of a positive band. A reasonable price would be somewhere under $100.

One good thing about the alcohol industry is that they have really consolidated over the last 10 years. There are 3 or 4 really big players and this is one of them. The growth is going to be coming from the emerging markets side and this company is doing very well there. Has a reasonable dividend and is not trading at an excessively high multiple. 2.3% dividend and think they will continue to increase them.

(Market Call Minute) Great dividend growth story.

In the early stages of a secular bull market, very often, the more defensive companies are the ones that garner a lot of investment dollars. Relatively modest dividend of about 2%. In general he feels these companies are raising what they are paying out as a percentage of their earnings so you’ll see pretty good dividend growth. This is not a bad place to be.

Beer stocks have had decent runs but are selling off a little bit right now because of concerns of a global slow down, particularly in emerging markets where the real growth was expected to come from. This is a very well run company and would probably be at the top of his list if he were adding one. He would probably get pretty excited about it 10% cheaper.