Coca-Cola Company (KO)

Thinks there is more potential with PepsiCo (PEP-N). Pepsi has the Frito-Lay division which is going to be a part that drives it. Pepsi seems to be coming over with more and better products. Population seems to be looking for a much better beverage that is much better for them.

Still a lot of money to be made. There are less people drinking carbonated soft drinks and that is why it is spending money to acquire a portion of Green Mountain and to try and get people to brew their own carbonated soft drinks at home. A great business that will continue on for many, many years. Generating an enormous amount of free cash flow. As they continue to retire shares and increase the dividend, people will wake up again to the stock.

Wants a more diversified company. Carbonated drinks are on a slow decline. Can they sustain their top line targets. They pulled back on emerging market demand decline. Strong yield and global footprint.

Just reported and numbers were essentially in line from an EPS standpoint. Revenues were at little bit lighter than expected. This is a business that has a significant exposure to foreign exchange and has a large EGM business. Both of those businesses are under pressure and there is little they can do about it. The next thing this company needs to do is to buy a snack food business.

(Market Call Minute.) World class operation. Valuation has recently come down. Has a history of growing its dividend.

This is not going to be your go-go growth type of company. It will give you a nice secure and growing dividend.

Reaching new levels and is looking exciting but is coming down along with the rest of the market. Chart shows a clear support level right about where we are now. Not a stock he would want to hold on to for a very long time. Doesn’t see a lot of support like there was in 2012. Could very well drop back to $33. Most people are in profit positions.

Very attractive dividend. Proponents of the stock would point to its scale advantage in North America and its very strong emerging market and global businesses. He doesn’t like the stock because 18X earnings is not particularly cheap given that it’s core franchise, Coca-Cola, has really been challenged from a volume growth perspective and has actually been negative for years and years. This has been exasperated in recent years by less and less consumer appetite for diet colas.

Great global consumer products name. There are others that she likes better. This one is just focused on soft drinks and beverages and she prefers a company with more diversified products. Corn prices have come off, which will help them on their raw material side. If the US market continues to do well, this company will participate.

It has doubled in the last 5 years. He thinks it will continue to do well. Yield 2.8%

Trading right bang on its model price. A year from now, the model price is going to be $48. 2.8% yield. Good quality name.

(A Top Pick July 12/13. Down 2.76%.) Sold his holdings. Continues to like this so if you own, there is no reason to Sell. A Buy if you have a positive view over the next 24 months.

Always liked it. It might pull back a little but that is a market call. If market went down 5 or 10% he would be a buyer.

(A Top Pick September 13/12. Up 1.7%.) Some of the defensive stocks have come off in the last several months. Still likes this as a defensive holding. Trading at 17X earnings and the growth is probably in the high single digits. It’s a premium brand and they are expanding into emerging markets. They are moving away from the carbonated drinks. 2.9% dividend yield, which should grow by about 7% a year over the next several years.

Trades at about 18X earnings with a 3% yield. Has pulled off because they had some issues with input costs which hurt margins. Margins are stabilizing now so that is going to be better. This is an incredible brand name. Have 17% of the carbonated market in the US and 22% in the developing world. The key to this story is really the emerging markets which has a huge upside. Have done a good job of diversifying their product mix. $46 in 12 months is a reasonable expectation.