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Investment Opportunities

Buy This Exact Stock – on This Exact Date

Buy This Exact Stock – on This Exact Date
  • PublishedApril 6, 2020

Today I’d like to share with you one of my first companies to buy when this pandemic clears up… Anheuser-Busch (NYSE: BUD).

Here’s why…

On a global scale, Anheuser-Busch has an estimated global market share of 28%. That’s massive.

As I’m sure you know, liquor stores remain open right now – as they’re deemed “essential” – during this stay-at-home mandate.

So it’s not a surprise to learn that in the month of March, overall alcohol sales from liquor stores were up 55% from 2019 levels.

But at the same time, since bars and restaurants remain closed, alcohol companies are still under a great deal of pressure, despite being recession-resistant sin stocks.

In particular, Anheuser-Busch gets 25% of its total revenues from bars and restaurants – and that entire segment of the company’s business will be virtually zero from mid-March through June.

Over in China, sales from duty-free stores (plus other shops in travel locations) dropped and will continue to drop up to 80% through June.

So you have strong March sales from liquor stores combined with zero sales coming in from the bar, restaurant and travel location segments.

As a result, Anheuser-Busch recently withdrew its earnings outlook for 2020 – and Pernod Ricard forecast a 20% drop in profit.

As of today, the company carries a forward price-to-earnings ratio of 12.97.

Anheuser-Busch’s share price is just under $45, which is 57% below its 52-week high.

So, in my view, when this entire world mess gets cleaned up, Anheuser-Busch will be a screaming buy. I’m targeting sometime in early May to start the accumulation process.

Action Plan: Why not buy Anheuser-Busch right now?

Well, it’s a timing issue. You see, historically speaking, 80% of bear market moves have retested the lows before truly bottoming and bouncing.

So I think the exact time to start accumulating shares of Anheuser-Busch won’t come until early May – once we retest the lows here in April. It’s just a safer move. Let’s say Monday, May 4. That’s when it makes sense to start adding shares.

To get in on the action, join me in The War Room today!

Written By
Bryan Bottarelli

Bryan graduated with a business degree from the highly rated Indiana University Kelley School of Business, and his first job out of college was trading stock options on the floor of the Chicago Board Options Exchange. He was mentored by some of the country’s top floor traders in the heart of the technology boom from 1999 to 2000, where he learned to identify and implement some of his most powerful trading secrets. Now he shares his secrets with a group of elite traders. We will be republishing some of his highly sought after content from his free e-letter, Trade of the Day.