Ask Matt: Is Molson Coors the next target?

Q: Is Molson Coors the next target?

A: Molson Coors' (TAP) stock was a big winner Wednesday on news beer giant Anheuser-Busch InBev has approached rival SABMiller about a buyout. Investors wonder if Molson Coors might benefit.

Shares of Molson Coors jumped more than 14% to close at $82.93 a share Wednesday. Investors figure Molson Coors might be able to buy some SABMiller U.S. assets for a song if regulators require Anheuser to divest of them. Moslon Coors could use size and cost benefits. Already, nine companies control 60% of the revenue collected by beverage companies traded on major global exchanges, according to data from S&P Capital IQ and Paste BN. Molson Coors is definately looking smallish as the giants merge. It's currently the 23rd largest brewer on a major global exchange. But such stock runups based on speculation are not the basis of a sound investment strategy. Investors can consider specuation, but need to evaluate what a company is now. Molson Coors is dealing with challenges in its business. Analysts expect adjusted profit per share to fall 9.4% in the current fiscal year and say the stock is fully valued. Beer is losing business in the U.S. to wine and spirits, says Joseph Agnese of S&P Capital IQ.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.