As a strong supporter of BUD since the last dot com boom, where BUD was again one of the few companies that was able to maintain stability, I would normally fully endorse the purchasing of BUD stocks. However, there are far too many variables this time. 6 months ago, when BUD stock was at $46.77 per share, I understood (even though I didn't post an analysis) that BUD was a good buy. Bottom line is, as the economy goes down, people drink more. HOWEVER, the rocky roads ahead in the takeover by INBEV have too many variables to be taken lightly.
While BUD may enjoy an increase in share prices for a short while, the merger with INBEV creates far too many unknown variables, including, but not limited to, the current exchange rates, the hostility of certain BUD shareholders and their subsidiaries to a takeover by INBEV, and the wild speculations that concern BUD stock.
In short, I expect that BUD will enjoy a brief rise in share prices, but caution those who purchase to be wary of September 29th, when INBEV shareholders vote on the Anheuser-Busch takeover. Between the unpredictabilty of how INBEV investors feel about a $52 billion purchase (euro36.6 billion), and also the rapidly changing exchange rate between the US dollar and euro, I predict that in less than 3 months BUD stock will make a brief drop, while INBEV, regardless of their decision, will enjoy a share price increase regardless of the September 29th vote.
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