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01/27/2012

Well ladies and gentlemen if you haven't heard there's a big football game coming up it's called the Super Bowl and you know what it has an impact on stock prices. talked to Jason moser from the Motley Fool about stocks that will be impacted hopefully in a positive fashion from the Super Bowl Jason welcome to the show how you doing. You could I was looking at your stock picks based on the Super Bowl and you think that these two stocks could increase in value. Because of the Super Bowl is that correct. Well I think it possibly nominate really say any company that will directly. Benefit from the Super Bowl well but I think that when you look at the audience. That the super bowl of catering to. You know DT stocks these two companies I think everybody knows a little bit about them and and they could certainly. Guess that you're suggesting Boston Beer could see an uptick in sales right Boston Beer being Sam Adams of course. Exactly and I think that you know popular beer is indeed it jockey for position back and forth plead with the English. As as deep into the largest American brewers. You know because potentially column consolidation in the industry now. Yet in either abolition. And then. They're they're obviously not American more that we think a lot of neatly sort of position back and forth I think a lot of the companies that we followed Eric Motley Fool. Now where do we really admire a lot away its first leadership. For the product that they put out for the waited on the business he had so what we've bee is live with like this especially craft brewers. They developed very loyal following and dumb. You know Iowa I would suspect that even if we don't see tremendous advertising from during the Super Bowl. They're gonna continue to grow. They're following and they put out more quality years. Yeah I am I mean that's the only beer my wife will drink right she loves him out of its big follower of the stock is traded during the last year. This stock has been as high as a 115 dollars talk about Boston Beer the symbol for the stock by the folks as. SAM. Then as high as a 115 dollars a share well. What impact will the Super Bowl have you could we see a pop in the price of the stock during the next couple weeks. Yeah that's really act it is so difficult to predict the short term market movement and I chipped it anybody gets really didn't the it's marketed so dictated by these. Big Mac crook macroeconomic. The headline nowadays with yet things going on in Europe housing and employment. So it's really difficult thing what may or may not have an impact on the short term price for the stocks. But over the long term we look at these companies that. It is one that you can buy and you know in drips and drabs that a little bit your portfolio that you there. In order to build up a position. In buying into a quality company that you can rely on and that should be able to build back into portfolio over time. See you dislike it as a core holding I think is what you're saying. What they literally interesting argument. Core because of the fact you know it's a smaller company it's only one point three billion dollars in market capitalization. And if you compare that Anheuser-Busch InBev which you know will most certainly gonna be plenty of beer commercials and promised to cater more to. Like the Budweiser and Miller Light to the world. But you look at something like another push for example that the 100 million dollar companies so essentially about a hundred times as big as his. Is there's spots and here and they'd they'd do a considerable amount more than the 39 billion 500 million. But but I do think that. That you can beat. These following continue to build and with the stock prices helped. It's trading at a reasonable valuation now it's always demanded a little bit of a premium to the market. But if you look at the forward at going on for the for the coming year. It's trading at about 24 the forward estimates which is still. Very reasonable based on historical multiple and so we could certainly be I think it's. You know the typical sort of expect consumers to hate and and I think that I think it's certainly been a ticket sales. Are you know let's talk about apple they are companies that clearly has enough money to buy Super Bowl advertising. Are they are they gonna be spending money on the suitable. You know I don't know that they'll have to spend all that much I mean what we're waiting for really beat something with the the iPad three coming out there and and when we looked over the because conference announce earnings to a couple of days ago. They didn't make any mention of the iPad pretty we beat these rumors coming out that they're talking about it. February or march but really why look at apple you we look at apple at such a wonderful example the company that basically dictating. What we'd do on a daily basis. And so we you know leading up to the Super Bowl a year you get a million god that there have been can it football their iPhone well a year or there iPad. But probably get another you know half the stadium there that's gonna be tweeting out her and stuff out and drive on the drive and brother at the game. And so for us you know apple all the companies that continue to innovate and dictate how we liberal to even if they don't have. Advertise during the Super Bowl you're told you're gonna have. Half the population that they're using apple let him one way or another to communicate back and forth what's going on in the Super Bowl. Miguel egg I can see that now. The they're currently trading at about what 44450. Share. Rent we would be what do you think the ultimate price of Apple's going to be in on the talking about tomorrow but. You know if a fair value estimate on Apple Stock. 121824. Months out. And that's to stay you know they you cheated on from the very important players we look at companies like apple and they end up years. We're not looking for what the ten weeks now to another table the company that. You can hold in your portfolio for a long time know that it's doing a great job creating value and it just got a we'll bumped from a three and earnings announcement. And so at 445 to 450 we still think that's a little bit undervalued really we think apple work more around 500 dollar per share to If you look at the forward estimates for the company. They're trading today at all. I have time earnings. But keep date that the forward testament to only trading at about ten that continent. So we really don't want Beckett he stop trading for you know 550 dollars plus over the course of the next twelve to eighteen months and that get that. Barring any kind of major announcement that we know that beyond the iPad three the other exciting you know. News that they're the world way to get more. In on these potential IPP product right we know that the force Steve Jobs that the way he was very. Excited about having cracked that code. So we feel like that's exciting and we know that were expecting big numbers for the iPhone. Going forty China as well. You know Tim Cook referred to battle on the conference call but it demanded China was staggering and in an indication of you know other countries. A one point five billion people on that that's not insignificant. And there are a lot of things to come together. You know apple wanted. Even told eighteen that still think you hope that years and it's going to be a major a greater. Our it would Jason thank you very much for your Super Bowl picks and of course console a Ladies and gentlemen that was Jason moser from the Motley Fool his two stock picks were. Boston Beer at the symbol for that SAM. And then of course we Apple's symbol AA PL thanks for joining and a lunch money today will be back on Monday with another edition of what's right right here in Boston stock station AM 680. WRKO.

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