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Brewing stocks go flat in 2nd quarter as economy stalls.

Brewing stocks went flat as investors, wary of the slow economic recovery, shuffled shares to and fro during 1992's second quarter ended June 30.

The cumulative performance of the brewing industry stocks tracked by the Modern Brewery Age Stock Index (listed in the accompanying table on page four) fizzled out for the three-month long stanza as a result. Specifically, the index fell 46.98 points, or 1.67 percent, before ending matters at 2759.60.

In stark contrast, other stocks in the U.S., as represented by the Dow Jones Industrial Average, posted strong marks vis-a-vis the brewing sector. Specifically, the Dow Industrials gained 83.05 points and dominated the headlines with its occasional recordsetting jaunts. Indeed, this index of 30 blue chip, cyclical stocks did manage to reach uncharted territory last quarter when it hit a record high of 3413. But economic and political uncertainty carved away at this indicator and when the dust settled, the Dow stood at 3318.52-up 2.57 percent for the quarter.

Turning to stocks in our industry, John Labatt won honors of our index's top dollar gainer as the Canadian brewer effervesced upwards of $2.00, or 7.92 percent during the quarterly trading session. Investors shrugged off Labatt's reported fiscal fourthquarter loss of C$23 million, and instead focused on the company's restructuring efforts. The stocks closed at $27.25.

Investors also added shares of Coors to their portfolios during the quarters as the company's share price was uncapped, fulfilling our index's largest percentage gainer. After brushing with its 52-week low of $ 17.00, Coors closed up nine percent for the period to $19.63.

Kidder Peabody & Co. Inc. upgraded Anheuser-Busch's rating from "hold" to "buy" predicting the brewing giant will capture a larger share in the beer market. Separately, Anheuser-Busch announced its plans to buy back 20 million shares of its common stock, or approximately seven percent of its total shares outstanding. Despite the news, the stock remained relatively stable throughout the quarter, only edging up 0.45 percent, or $0.25 to settle at $55.50.

Genesee Brewery hiked up 1.7 percent, or $0.75 a share as it caught a glimpse of its 52-week high of $46.50 before closing at $44.25. The company announced fiscal year net earnings of $4.64 a share, up from $3.71 last year.
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Publication:Modern Brewery Age
Date:Jul 13, 1992
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