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Author: jballar One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1933  
Subject: Re: BUD: A Graham Pick? Date: 3/21/2005 9:03 AM
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I have large % of my portfolio in BUD at cost basis of around $49.50.

Yes, this stock is cheap and should be bought now, in my opinion.

They have a lot of debt, but one metric Graham would look at is interest coverage ratio, which is how many times earnings cover interest payments on debt. For Bud, that ratio is 8.0x. Plus, look at the free cash flow. BUD is a big-time cash-cow. Like Coca-Cola, BUD also is the dominant player in the beer industry with 50% domestic share. BUD is currently investing in its expansion in to China, which could give them more competition but you have to focus on the BRAND. Invest in the brand.
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