Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

Shhhhh! Don't tell anybody!

In 1995, InBev paid $2.7 billion for Labatt and it was doing less than $300 mil a year on just the beer sales portion of the business. Then, the company was into some communications owning some TV and radio stations as well as majority owner in the Toronto Blue Jays and the Skydome. Now they are primarily beer and the entire company is doing $400 million a year in sales. Labatt USA comprises exactly half of the entire company's sales, or $200 million a year.

13 years later and 40% higher sales? Wow! Whoever picks up this license is golden. It is perpetual and the brewery to make the beer must be decided after three years. Still, that license for a company that 13 years ago was valued at $1 billion all by itself because none of those other items Labatt was in to was in the US. Remember Kenny said beer transacts at $100 to $500/case depending on if there is a brewery involved? In 2007, Labatt USA sold 1.7 million hectoliters OR 19.95 million cases of Labatt USA products. Even at a bare minimum of $100 per case, that values Labatt USA at $1.95 billion. Wouldn't you think it would be worth buying for a couple hundred million if it is immediately valued for at least a $billion if not $2 billion on the very low end? Like we said, fire sale prices now. Three years from now, 10 times the money.

1995 Buyout of Labatt:

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=M1ARTM0010436

Current DOJ Order:

http://www.zimbio.com/Anheuser+Busch+Companies+Company+Info/articles/102/Inbev+Anheuser+Busch+Deal+Approved+DOJ

More on the inner workings of the ABIB Labatt Divestiture:

http://www.tradingmarkets.com/.site/news/TOP%20STORY/2032995/