As we survey the damage that has been inflicted on heretofore solid American corporations such as Boeing, Hyatt Hotels, IBM and even AAPL, we have to make some assumptions as far as their futures moving forward. We’ll go out on a limb and assume that the world won’t end in 2020, in which case, consideration of great American companies which have been unduly impacted for technical reasons should be more closely scrutinized.
Financial results will be ravaged at those companies unfortunate enough to be at the center of the market turmoil such as airlines, cruise companies and hotels. Many other unrelated companies have been pulled into the whirlpool as well but there are some signs of decreased selling as time passes.
Anheuser Busch, BUD, may be such a candidate. One of the largest firms of its type in the world, BUD is the holding company for the worldwide distribution of alcoholic and non-alcoholic beverages in all major consumer markets. To be sure, this company was never a strong relative strength performer and the peak price was reached mid last year at over 102, well before the market’s swoon in February. At the most recent low, the price bounced off 32.5. The stock has since rebounded to 42, but the compelling reason to look at BUD more closely is the activity shown in the accumulation/distribution line.
Even before the stock had reached it’s lowest point, the accumulation/distribution line was already turning the other way. We can also observe that the MACD oscillator, a momentum tool, appears to be in the process of turning which is another factor to take into consideration. It appears that buyers find the valuation compelling in this zone.