Companhia de Bebidas das Americas - AmBev, and its subsidiaries, produce, market, and distribute beer, draft beer, malt, soft drinks and other non-alcoholic beverages (isotonic sport drinks, iced tea, and water) in the Americas. Brazil, Hispanic Latin America (HILA) and North America comprise this Brazil based company's corporate design. The Brazil segment includes three divisions: beer sales; carbonated soft drinks and non-alcoholic non-carbonated sales, and sales of malt and by-products to third parties. HILA (includes: Quinsa, that operates in Argentina, Bolivia, Paraguay, Uruguay, Chile) together with its operations in the Dominican Republic, Ecuador, Guatemala, Peru and Venezuela, make up HILA-ex. Labatt Brewing Company Ltd. sells and exprots beer in the US and Canada the complete the company's strategic structure.
Investment Impacts (help)
Brazil Country Analysis ► (edit / improve) Brazil (BRL) is a member of the BRIC nations and has the largest economy in South America. Brazil has significant agricultural and industrial industries. Currency Analysis: the Brazilian currency has the potential to increase in value especially versus many developed market currencies. Brazil has high interest rates, low inflation and positive investment flow potential. Investor Survey: the economic environment is moderate, with low government transparency and high SWOT opportunities. Trade Analysis: China, Netherlands, Argentina and USA are the top trading partners. Brazil has significant export capabilities in agriculture and industrial products such as ethanol, sugar, oats, pork, corn, soybean and airplanes. Commodity Analysis: A favorable growth environment and car fuel demand create a significant and growing industry for Ethanol. SWOT Analysis: Ethanol is the leading US strength, while education, crime and income inequality are major weaknesses. A recent oil discovery is a major opportunity for Brazil, while the threat of HIV could slow growth and burden the health system. Profit Conclusion: An undervalued currency, moderate investment flow potential and positive SWOT opportunities help Brazil, but fundamental weaknesses and government issues hold back Brazil’s potential.
Water Commodity Analysis ► (edit / improve) Water is the liquid form of the most important substance on earth. Water covers seventy percent of the world’s surface; 97% of which is saltwater. Commodity Analysis: Water is rated a hold. Water demanders and suppliers have a moderate potential to increase in value. Investor Survey: Water’s long term growth potential is very favorable due to high scores on sensitivity to price changes and substitute products. SWOT Analysis: Strength: Water is the most precious substance on earth; without it, life could not exist; Opportunity to grow: the demand for water will increase as the world’s population increases; Threats to growth: contamination and pollution could limit the supply of water. Profit Conclusion: The commodity analysis hold rating indicates that water should stay the same price over the short term, whereas a very favorable investor survey means water will increase in price over the long term.
Staple Industry Leader
Staples Industry Analysis ► (edit / improve) Description: The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Valuation Analysis: Based on WikiWealth's Wall Street analysis, this industry is a Hold, but with a ~ 30 percent potential. The Main Street analysis says a Buy with SWOT strengths much great than weaknesses and SWOT opportunities roughly the same as threats. Trade Analysis: Some of the main trade hubs include Argentina, Brazil, USA, Colombia, Greece, Italy, Turkey, and Indonesia, while the main staple commodities include chicken, corn, milk, oats, rice, sugar, wheat. Profit Conclusion: The consumer staple industry tends to be less sensitive to economic cycles. Look for undervalued staple investments at any time in the business cycle, and especially during the late stages of a bull markets when investors become more defensive. The global economy is currently in a recession, therefore, investors are rotating money out of consumer staples and into faster growth industries.
- Industry leaders often shape the political and economic conditions for their industry.
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WikiWealth.com Industry Description: The consumer staple industry includes companies whose sales come from necessary consumer staple purchases such as rent, mortgage and food. Read More.
WikiWealth.com Profit Analysis: The best way to profit from consumer staple stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) before economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). When an economic recovery occurs, consumer staple stocks tend to underperform the general stock market, because consumers quickly resume spending on items they wanted, but resisted buying during tougher economic times. Consumer stables are generally items that consumers bought during a recession, but don't increase purchases during economic expansions. Eventually other stock investments become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to buy staple stocks, because they are the least risky equity investments in a declining stock market. As investors search for safe (less risky) stock investments, they tend to buy consumer stables. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. stock research ratings.
WikiWealth.com Industry Analysis: Consumer staples tend to be less sensitive to economic changes. During economic recessions, consumers tend to decrease discretionary expenses to save money, but they can not decrease purchases of consumer staples, because they are needed for everyday living. Spending on consumer staples generally remains constant, so during economic recessions, investors tend to buy consumer staple stocks, which causes stock prices to increase. During economic recoveries, consumer staple stock prices generally underperform the general stock market. Investors who bought consumer stable stocks during the recession, tend to make new investments in faster growing industries. During longer economic expansions, consumer stables tend to growth at the same rate of the general stock market.
1 WikiWealth.com only uses the largest 30 companies in each industry for the basis of these financial measures. Each statistic is the market weighted average of the 30 companies.
2 Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
