The alcohol sector has been “buzzing” this year and on the ascent, pun intended. Names like STZ DEO TAP and BUD have been on the move. There has been consolidation in the space and technically the group looks stout. DEO is sporting a cup with handle trigger of 117.02 and TAP and STZ trade just off all time highs. Lets take a look at BUD in both a past and present form. Below is how the idea was presented in our Friday 10/23 Game Plan.
Stocks that can be bought as they take out their 200 day SMAs and then added to above future valid base triggers are BUD. BUD is an alcohol play up 4% YTD and 10% over the last one year period and sports a dividend yield of 3%. Its last earnings reaction fell by 4.1% stopping a prior 3 report winning streak which saw BUD rise 2.3, 24. and .9% on 5/6, 2/26 and 10/31/14. It REPORTS next Friday before the open. The stock is looking for its 4th weekly gain in a row and the last 5 have all CLOSED well in the upper half of the weekly range, even the week ending 9/25 which lost 4.2%. On a more positive note the week ending 9/18 gained 6.3% on the best weekly trade in 2.5 years. Enter BUD with a buy stop above the 200 day SMA at 119 and add to above a cup base trigger of 129.34.