Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, February 16, 2007

Article Excerpt

ANHEUSER-BUSCH COMPANIES INC. $51.16, New York symbol BUD, gained nearly $2 on rumors it is thinking about merging with European brewer InBev. A merger would create the world’s largest brewer, and undoubtedly run into anti-trust problems in several countries. It would also take years of restructuring before the merged company started to realize any cost savings. Regardless of whether the deal goes through, we still like Anheuser-Busch’s long-term prospects. It has around 50% of the United States beer market, and this makes it easier for the company to pass along rising costs to consumers. Major investments in breweries in Mexico and China also add to its appeal. Anheuser-Busch is a buy. ALCOA INC. $34.78, New York symbol AA, also moved up this week on takeover rumors. Media reports said that two multi-national mining companies, BHP Billiton and Rio Tinto, were each preparing independent offers. Alcoa has no controlling stockholder, so a takeover is always a possibility. These two potential buyers probably like Alcoa for…

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