Essay About Recommendation Of Selling Budmy Manager And Dr Pepper Snapple Group

Memorandum
MEMORANDUMTO:         Manager  FROM:      Qifan Yao, Yaran Yang, AnalystsDATE:       Oct 7, 2015SUBJECT:    Recommendation of Selling BUDMy manager has asked me to prepare a memo comparing and contrasting Anheuser-Busch InBev NV (BUD) with its industry competitors. I picked Dr Pepper Snapple Group, Inc. (DPS), Boston Beer Co. Inc. (SAM), and Coca-Cola Co/The (KO) as competitors of BUD. As a result of my research, I recommend selling all InBev’s stocks.The following chart contains data that I will refer to in this memo.Anheuser-Busch InBev NVDr Pepper Snapple Group, Inc.Boston Beer Co. Inc. (craft brewing)Coca-Cola Co/TheTickerBUDDPSSAMKOStock Price(10/7/15)110.9683.11222.1741.52Sales(Jun 30, 2015)11,052,0001,655,000252,20412,156,000Sales(March 31, 2015)10,453,0001,451,000199,50310,711,000Sales growth(Qrtly)5.73%14.06%26.42%13.49%Net Income(Jun 30, 2015)2,263,000220,00029,9323,108,000Net Income(March 31, 2015)3,098,000157,00013,7431,557,000Net Income Growth(Qrtly)-26.95%40.13%117.80%99.61%Trailing P/E19.2022.6630.1224.31ROA6.38%9.16%16.66%7.10%Chart 1