Random Beer Thoughts

[lb304854]

Who warns people about the Tenderloin? Lakeview is the scary neighborhood.

I don't know. I think this was 2012. Has the Tenderloin turned around? Seemed like a cool little enclave.

I was more sketched out by the walk to Cellarmaker from 4th & King a few months back just because there was surprisingly nothing there for a long stretch.

 

[lb304854]

Everyone I know from Chicago brags about public transportation and how they’ve never even owned a car until they moved here. You guys really brag about weird ****.

So you're not a fan of the hawt Walk Score real estate sites use?

I wish I didn't have to own a car. Other people make driving terrible.

 

[drgarage1]

I don't know. I think this was 2012. Has the Tenderloin turned around? Seemed like a cool little enclave.

I was more sketched out by the walk to Cellarmaker from 4th & King a few months back just because there was surprisingly nothing there for a long stretch.

Nah, TL is just known for drugs, homeless, and petty crime. You’re not going to get shot there. Historically, it was a bad neighborhood. Now it’s just dirty. Soma, on the other hand, has a bunch of weird, empty areas. Only place I’ve ever had a car window smashed.

 

[Lutter]

I hope their next beer isn't a brown ale.

 

[jivex5k1]

I hope their next beer isn't a brown ale.

I hope it is.

 

[Lutter]

I hope it is.

Brown and chocolately how it stews

Come on in and try our brews

The aroma on this one is wet and stinky

This cord is much wider than a pinky

Did you know that poop is a palindrome

Come and lick our brown ale's foam

 

[nathanmiller]

Brooklyn is extremely safe in pretty much all areas.

 

[trickytunadicky]

I hope their next beer isn't a brown ale.

shockingly they learned quickly that was dumb as ****

(Link to media)

 

[Lutter]

shockingly they learned quickly that was dumb as ****

(Link to media)

lol.

 

[quirk6]

I was just reading through this: https://www.cbsnews.com/pictures/mu...tag=ACQ449302a&vndid=5af9cfffe4b067c8b7a96962

Turns out Minneapolis has a much higher murder rate than NYC. Also, stay the **** out of St. Louis.

 

[ccbstl]

I was just reading through this: https://www.cbsnews.com/pictures/mu...tag=ACQ449302a&vndid=5af9cfffe4b067c8b7a96962

Turns out Minneapolis has a much higher murder rate than NYC. Also, stay the **** out of St. Louis.

STL and Baltimore are essentially standalone cities that don't share a county with their suburbs which increases per capita murder statistics. Come visit, just don't try to buy crack or heroin and you'll be fine. Or do, I'm not your mom.

 

[Gonzoillini1]

STL and Baltimore are essentially standalone cities that don't share a county with their suburbs which increases per capita murder statistics. Come visit, just don't try to buy crack or heroin and you'll be fine. Or do, I'm not your mom.

In the same way (although the suburbs do stretch out a fair bit), Chicago isn't dangerous at all compared to other major cities. The violence / danger is largely contained to a few neighborhoods that folks who don't live there shouldn't be in unless they are looking for vice / trouble.

Also Munich Helles is Pilsner's more mainstream relative.

 

[blabaer]

This has got to be one of the more shameless scams I've ever seen. Wait, if I "invest" $1,000 I get to be in a Brewdog club??? For 12 beers??? Only four of which are different???

https://www.brewdog.com/usa/equityforpunks/benefits

EDIT: Don't look now. But a mere $10,000 will get you a 2 night hotel stay. In a hotel that doesn't exist yet!

 

[PhilT1]

This has got to be one of the more shameless scams I've ever seen. Wait, if I "invest" $1,000 I get to be in a Brewdog club??? For 12 beers??? Only four of which are different???

https://www.brewdog.com/usa/equityforpunks/benefits

EDIT: Don't look now. But a mere $10,000 will get you a 2 night hotel stay. In a hotel that doesn't exist yet!

I know folks like to **** on Brewdog, or 'Brodog' as they are now known, but to be fair, if you see it as an investment first and foremost you can't deny they are a very successful company with a potential for good returns on your investment... these beer clubs and hotel stays are just additional perks. Also the Columbus hotel is open...

 

[andrewdrinks]

I still have my shares, even if I don’t Buy from them any more. The £190 (about $300 back then) I put in back in 2011 has got me around £1000 off beers in their bars/online shop over the years.

Even if they were now worthless, I think I’ve done okay - but the latest funding round values my original shares at £14,250 ($18,707). So... fair enough?

 

[drgarage1]

I know folks like to **** on Brewdog, or 'Brodog' as they are now known, but to be fair, if you see it as an investment first and foremost you can't deny they are a very successful company with a potential for good returns on your investment... these beer clubs and hotel stays are just additional perks. Also the Columbus hotel is open...

Yeah, having each share dilute from $50 to $5.32 is a hell of a great investment, especially as it’s for equity in the American company only, with no European holdings. Can’t recommend this deal enough.

 

[PhilT1]

Yeah, having each share dilute from $50 to $5.32 is a hell of a great investment, especially as it’s for equity in the American company only, with no European holdings. Can’t recommend this deal enough.

Wasn't aware of that, got a source?

 

[drgarage1]

Wasn't aware of that, got a source?

Their own investment prospectus, which they euphemistically call a “circular.”

https://6303ffd34a16b1ca5276-a9447b... USA Inc. Regulation A+ Offering Circular.pdf

Read the section on dilution.

 

[Padraig]

While other breweries are pissing about with pointless collabs Fuller's are busy bringing the realness.

 

[owens99]

Yeah, having each share dilute from $50 to $5.32 is a hell of a great investment, especially as it’s for equity in the American company only, with no European holdings. Can’t recommend this deal enough.

Their own investment prospectus, which they euphemistically call a “circular.”

https://6303ffd34a16b1ca5276-a9447b7dfa4ae38e337b359963d557c4.ssl.cf3.rackcdn.com/BrewDog USA Inc. Regulation A+ Offering Circular.pdf

Read the section on dilution.

I don't think this means what your post implies it means. Prior to the offering, the company's net tangible book value per share is $0.21. But that's not the economic value of those shares. Most companies (whether public or private) are worth substantially more than their tangible book value per share. All this is saying is that this offering will result in an increased net tangible book value per share (my numbers are a few cents off from the prospectus):

So the offering results in an increase of $5.34 - $0.21, or $5.13 per share in tangible book value. That's what happens when shares are issued at a market price greater than book value. But that doesn't mean that the $50 investment has somehow transformed into only $5.34 of value. It just means that investors who bought these shares paid more than tangible book value per share, which is completely normal.

[I would never purchase shares in this.]

 

[drgarage1]

I don't think this means what your post implies it means. Prior to the offering, the company's net tangible book value per share is $0.21. But that's not the economic value of those shares. Most companies (whether public or private) are worth substantially more than their tangible book value per share. All this is saying is that this offering will result in an increased net tangible book value per share (my numbers are a few cents off from the prospectus):

So the offering results in an increase of $5.34 - $0.21, or $5.13 per share in tangible book value. That's what happens when shares are issued at a market price greater than book value. But that doesn't mean that the $50 investment has somehow transformed into only $5.34 of value. It just means that investors who bought these shares paid more than tangible book value per share, which is completely normal.

[I would never purchase shares in this.]

It is extremely not normal in a private offering. It’s not illegal, but it does mean that if you buy 10 shares at $500, they’re then valued at $53.40. No one should do this deal other than for the perks, especially as there’s no real market for selling these shares and an IPO by BrewDog is unlikely. Only possible way you make money is if they sell to one of the big beer companies.

 

[Padraig]

I thought James Watt's stated strategy was to IPO? This was a couple of years ago.

 

[owens99]

It is extremely not normal in a private offering. It’s not illegal, but it does mean that if you buy 10 shares at $500, they’re then valued at $53.40. No one should do this deal other than for the perks, especially as there’s no real market for selling these shares and an IPO by BrewDog is unlikely. Only possible way you make money is if they sell to one of the big beer companies.

It's not normal to pay more than book value in a private offering? What are you talking about?

 

[drgarage1]

It's not normal to pay more than book value in a private offering? What are you talking about?

It’s not normal to pay more than post-financing book value, is what I mean. Obviously, almost the entire point of new financing is to increase valuation for existing holders, so I’m not expecting new investors to get in at 21 cents. But if my share price is $50, that’s what new book value should be. No matter how you slice it, this is an instant 90% devaluation.

 

[owens99]

It’s not normal to pay more than post-financing book value, is what I mean. Obviously, almost the entire point of new financing is to increase valuation for existing holders, so I’m not expecting new investors to get in at 21 cents. But if my share price is $50, that’s what new book value should be. No matter how you slice it, this is an instant 90% devaluation.

This isn't how book value works .

 

[drgarage1]

This isn't how book value works .

Sorry, confusion of terms on my part. Standard book value works this way. Tangible book value is way more conservative.

 

[KevSal]

This has got to be one of the more shameless scams I've ever seen. Wait, if I "invest" $1,000 I get to be in a Brewdog club??? For 12 beers??? Only four of which are different???

https://www.brewdog.com/usa/equityforpunks/benefits

EDIT: Don't look now. But a mere $10,000 will get you a 2 night hotel stay. In a hotel that doesn't exist yet!

brew dog is still a thing? how the **** are they still around? i saw them drink a beer that was filtered through a used sock, that was it for me.

 

[Padraig]

I still have my shares, even if I don’t Buy from them any more. The £190 (about $300 back then) I put in back in 2011 has got me around £1000 off beers in their bars/online shop over the years.

Even if they were now worthless, I think I’ve done okay - but the latest funding round values my original shares at £14,250 ($18,707). So... fair enough?

Drinks - when you moved to the US did you think, like me, that you'd finally escaped the E4P debate?

 

[owens99]

It’s not normal to pay more than post-financing book value, is what I mean. Obviously, almost the entire point of new financing is to increase valuation for existing holders, so I’m not expecting new investors to get in at 21 cents. But if my share price is $50, that’s what new book value should be. No matter how you slice it, this is an instant 90% devaluation.

Of course it's normal to pay more than post-financing book value per share. Book value is an accounting term, not a measure of how much the equity is worth, and it has nothing to do with the distinction between tangible book value and overall book value.

Here's a simple example. Suppose Shaun Hill starts a brewery and forms a corporation where he owns all 50 shares of stock. He's going to run the brewery, and he starts the company off with an injection of $100. At that point, the book value is $100, or $2/share. Then he offers to issue an additional 50 shares to the public (which dilutes his ownership stake to 50%) and JulianB buys those shares at a price of $50 each, because he knows that Shaun Hill is a genius and the company is going to be immensely profitable. After that offering, the company has 100 shares outstanding; a total book value of $100+$50*50 = $2,600; and a book value per share of $26.

The fact that JulianB purchased at more than the post-offering book value per share is totally normal and does not represent an instant devaulation for anyone. The fact that JulianB purchased his shares at $50 does not magically make the book value of all shares equal to $50.

 

[WhalezB4Rarez]

I was told there would be no math.