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🍺 Boston Beer Party
Boston Beer Company shares soar on acquisition rumors. Plus, the overall market's win streak snaps.
Brooks Dyroff
May 31, 2024
Happy Friday, Zingernation! You probably have that one friend who tells you to put all of your money in crypto. You definitely have that one friend who doesn’t trust banks and stores all their money in their mattress. But if you had one friend named Mark Cuban, here’s where he’d tell you to keep your money. (And, no, it’s not in an NBA team.)
–Aaron Bry & Nic Chahine
Today’s Price Action:
$SPY: +.91%
$QQQ: -.19%
$DIA: +1.59%
Plus, check out the company capitalizing on the $11 trillion dollar commodity market.
TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: The U.S. stock market ended a five-week positive streak as investors feared that slowing economic momentum could impact the earnings outlook for American corporations.
So Basically: Per second GDP estimates, the U.S. economy grew at an annualized rate of 1.3% in the first quarter, marking a downward revision from the previous estimate of 1.6%.
So Then: The Fed's preferred inflation measure, Core PCE, remained steady in April, easing some worries about resuming price pressures.
But Still: Slowing spending and income growth signaled weakening consumer health, while the Chicago business activity gauge plummeted to its lowest level since May 2020, raising concerns about a potential end-cycle slowdown.
So What: The tech sector, as tracked by the Technology Select Sector SPDR Fund, was the worst performer of the week, while utilities, tracked by the Utilities Select Sector SPDR Fund, outperformed as investors shifted their focus to defensive sectors.
Click here to read more.
PRESENTED BY RESOURCE STOCK DIGEST
Amazingly, the $11T global commodities sector still runs primarily on paper transactions and phone calls!
And thus, a comprehensive digital solution for moving commodities around the world has been long, long overdue.
One tiny company — trading completely undiscovered around 15-cents per share — has successfully partnered with some of the largest players in the industry to bring a first-of-its-kind digital solution to the global commodities supply chain sector.
For investors, it’s an early-stage opportunity in a company with a true first-mover advantage in a globally diversified sector.
ONE TRADE IDEA FOR NEXT WEEK
Briefly: Boston Beer Company shares soared today on a report the company is considering a move that could be a big change for one of the best-known beer stocks.
So Basically: Boston Beer could be nearing a sale that would value the company at a premium to its current $3 billion market capitalization.
Specifically: A Wall Street Journal report said Boston Beer is in talks with Suntory, the owner of Jim Beam.
Back Up: Boston Beer and Suntory signed a partnership for ready-to-drink beverages in 2021.
So What: The potential acquisition comes as shares of Boston Beer — parent company of Samuel Adams, Twisted Tea, Truly and more — are down around 25% on the year, and as several beer companies have declared bankruptcy.
What Next: The company was founded by Jim Koch in 1984. Koch is the chairman of the company and holds 100% of the voting rights via Class B shares, which makes his approval of a deal necessary.
Click here to read more.
PRESENTED BY RESOURCE STOCK DIGEST
Amazingly, the $11T global commodities sector still runs primarily on paper transactions and phone calls!
And thus, a comprehensive digital solution for moving commodities around the world has been long, long overdue.
One tiny company — trading completely undiscovered around 15-cents per share — has successfully partnered with some of the largest players in the industry to bring a first-of-its-kind digital solution to the global commodities supply chain sector.