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Five all-new small to mid-cap stocks for 2018

Craft Brew Alliance (BREW)

This is really the very same argument I made last week when I said that Anheuser-Busch InBev (BUD) was a sell. Cheapo beer (can you think of a better name for it?) comes in aluminum cans and tastes like standing water. Craft beer comes in bottles and tastes like beer. Due to the higher price of aluminum because of the recently announced 10% tariff on aluminum, cheapo beer may soon be more expensive. (Nearly all aluminum will be charged under the tariff in its current form; see the Aluminum Association’s argument here.) It follows that some consumers will be pushed to trying craft beer, and no one stands to benefit more from that than the Craft Brew Alliance, which includes Redhook Ale Brewery, Widmer Brothers Brewery, and Kona Brewing company. The company is worth $359 million and only recently became profitable. f it can raise its profit margin further, BREW shares are likely to do very well indeed.

True, Corona, which is basically a cheapo beer, also comes in bottles, but I’ve reiterated my bullish position on that stock recently enough.


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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.