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Am I an unwise fool to stick with BUD? I purchased the stock some years ago upon the Fool rec. After this morning, (Ouch down 10% and cutting it's dividend) I'm really starting to wonder if the stock will ever recover. Thanks for any insight.
I just read an interesting article on this; don't know if it's linkable - it's on the Fidelity account research link - about these developments

My take on it-less than $.02 worth, likely- is that this might be the worst possible time to sell BUD, or Molson Coors (TAP) or Heineken (HEINY) for that matter. I truly suspect this is probably a near-term low for all. Why?
1. The micro-or craft-brewers are in all their glory right now. Some of this is sure to be a passing fad. AND some of them are sure to be acquired by the macro brewers. That's already happened in a few spots. In others, the micro and macro brewers might work out some sort of profit-sharing-arrangement for the micro brewers to gain access to the macro brewers distributors networks. But I have no doubt the big guys will survive.
2. The big drop today is due to the disappointing quarterly earnings -an overreaction, I think, but also combined with a jittery and volatile market in general.
3. The dividend cut surprised me also, but the Dow Jones article says the company addressed that in the earnings conf. call announcement, making the point that for the short term, they consider it more important to reduce debt than to distribute cash to shareholders. I can't argue with that.
4. That also tells me that they're focused on the process of digesting the merger with SAB, which is where a lot of the debt came from. And the benefits of that merger will be realized over a good amount of time, for which we should be patient.
5. Similarly, TAP is also going through a short-term transition with some growing pains, in the process of digesting and integrating its 100% ownership of Miller Coors, having acquired SAB's ownership of Miller Brewing from SAB, as required for antitrust purposes for the deal to go through.

So really, I'd be surprised if things could get much worse. (Well, if they do, I'll be disappointed.) I have a lot of food & beverage stocks, which I consider a defensive part of my portfolio.

For the record, I own A-B InBev (BUD, Molson Coors (TAP), Heineken (HEINY) and Diageo (DEO). I like them all, as well as their products. I don't care for Budweiser beer. My favorite beers are Miller Genuine Draft, Leinenkugel's, Heineken, Bass Ale, Beck's, and Guinness. I believe in putting my money where my mouth is.
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