Coca-Cola Company

KO-N

NYSE:KO

50.55
0.24 (0.47%)
The Coca-Cola Company, which is headquartered in Atlanta, Georgia, but incorporated in Wilmington, Delaware, is an American multinational beverage corporation, and manufacturer, retailer, and marketer ...
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Analysis and Opinions about KO-N

Signal
Opinion
Expert
BUY
BUY
March 30, 2020
CO-N vs. PEP-Q. They are both consumer stables and he likes them because they are falling off maybe 20% from their high. He is more a Coke guy and it is close to EBV+7 at $39 and closed at $42.81. Close to $38-9 he would be a buyer, maybe even at this price. You can do one or the other and still be okay.
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CO-N vs. PEP-Q. They are both consumer stables and he likes them because they are falling off maybe 20% from their high. He is more a Coke guy and it is close to EBV+7 at $39 and closed at $42.81. Close to $38-9 he would be a buyer, maybe even at this price. You can do one or the other and still be okay.
DON'T BUY
DON'T BUY
November 14, 2019
It is considered consumer defensive. We will probably see it bounce a tiny bit and then if it resumed going up it would bump off $50. You want to be selective in owning these. He has lightened up.
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Coca-Cola Company (KO-N)
November 14, 2019
It is considered consumer defensive. We will probably see it bounce a tiny bit and then if it resumed going up it would bump off $50. You want to be selective in owning these. He has lightened up.
BUY WEAKNESS
BUY WEAKNESS
September 11, 2019
It is leveraged to global consumer spending. They continue to boost margins and cut spending. The multiple is very rich as you are paying 20 times for 8 percent growth in earnings. (Analysts’ price target is $57.00)
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Coca-Cola Company (KO-N)
September 11, 2019
It is leveraged to global consumer spending. They continue to boost margins and cut spending. The multiple is very rich as you are paying 20 times for 8 percent growth in earnings. (Analysts’ price target is $57.00)
BUY
BUY
July 16, 2019
1-year outlook A great, great chart, because it break through a long base at $50. This is bullish.
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1-year outlook A great, great chart, because it break through a long base at $50. This is bullish.
TOP PICK
TOP PICK
April 4, 2019
More defensive play. Dividend Yield of 3.44%. P/E of 22x. $32 billion in revenues. They recently bought a coffee company with a lot of growth. (Analysts’ price target is $49.90)
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More defensive play. Dividend Yield of 3.44%. P/E of 22x. $32 billion in revenues. They recently bought a coffee company with a lot of growth. (Analysts’ price target is $49.90)
BUY WEAKNESS
BUY WEAKNESS
November 22, 2018
A consumer staple name that is doing the right thing by downplaying their bread and butter business. They are getting more into sports drinks to diversify. It should trade at a premium. You should buy when it trades down. He has PEP-T right now.
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Coca-Cola Company (KO-N)
November 22, 2018
A consumer staple name that is doing the right thing by downplaying their bread and butter business. They are getting more into sports drinks to diversify. It should trade at a premium. You should buy when it trades down. He has PEP-T right now.
DON'T BUY
DON'T BUY
August 31, 2018

Coke differs from the broader staples sector. It’s strong between March and June, so look for it in the second quarter. Seeing a rollover, and a short-term double top. Suggests more downside weakness. Heading for breaking support at $44 and $41. Stay away.

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Coca-Cola Company (KO-N)
August 31, 2018

Coke differs from the broader staples sector. It’s strong between March and June, so look for it in the second quarter. Seeing a rollover, and a short-term double top. Suggests more downside weakness. Heading for breaking support at $44 and $41. Stay away.

PAST TOP PICK
PAST TOP PICK
August 28, 2018

(Past Top Pick, June 25, 2018, Up 4%) Disappointing. Expecting more from it, but he'll hold onto it. There's time.

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Coca-Cola Company (KO-N)
August 28, 2018

(Past Top Pick, June 25, 2018, Up 4%) Disappointing. Expecting more from it, but he'll hold onto it. There's time.

TOP PICK
TOP PICK
June 25, 2018

It's built a nice base. It's so boring, yes, but whenever it reaches these levels in the low-40s, it bounces up. Limited downside, but likely upside. (Analysts' price target: $49.80)

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It's built a nice base. It's so boring, yes, but whenever it reaches these levels in the low-40s, it bounces up. Limited downside, but likely upside. (Analysts' price target: $49.80)

HOLD
HOLD
March 20, 2018

Great, solid company, but not going anywhere. The trend is moving away from soft drinks. They've already penetrated the world and face newer soft drinks coming up. Probably see a small dividend increase. Hold it and get your dividend to sleep at night, but there's not enough growth here. Dividend yield of 3.6%.

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Great, solid company, but not going anywhere. The trend is moving away from soft drinks. They've already penetrated the world and face newer soft drinks coming up. Probably see a small dividend increase. Hold it and get your dividend to sleep at night, but there's not enough growth here. Dividend yield of 3.6%.

COMMENT
COMMENT
February 6, 2018

Prefers this stock to Pepsi (PEP-Q). Has also diversified away from soft drinks. Has divested its bottling business. It collects royalties from that, along with cash from the sale. If he had to pick between them, he would buy Coke.

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Coca-Cola Company (KO-N)
February 6, 2018

Prefers this stock to Pepsi (PEP-Q). Has also diversified away from soft drinks. Has divested its bottling business. It collects royalties from that, along with cash from the sale. If he had to pick between them, he would buy Coke.

HOLD
HOLD
December 11, 2017

One of the great companies of the world according to Warren Buffet. Volumes are probably going to start to decline as people drift away from carbonated beverages. They still have tremendous profitability in the third world. At 25X earnings, it is discounting a lot of that, and the stock will do well the next time the market falls. Dividend yield of 3.3%.

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Coca-Cola Company (KO-N)
December 11, 2017

One of the great companies of the world according to Warren Buffet. Volumes are probably going to start to decline as people drift away from carbonated beverages. They still have tremendous profitability in the third world. At 25X earnings, it is discounting a lot of that, and the stock will do well the next time the market falls. Dividend yield of 3.3%.

SELL
SELL
November 29, 2017

If he owned this, he would switch to Pepsi (PEP-N). There is more optionality with Pepsi. Coca-Cola has re-franchised their bottling agreements. The margins are relatively high. Pepsi is not as operationally efficient, which means that it is probably a better acquisition target.

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Coca-Cola Company (KO-N)
November 29, 2017

If he owned this, he would switch to Pepsi (PEP-N). There is more optionality with Pepsi. Coca-Cola has re-franchised their bottling agreements. The margins are relatively high. Pepsi is not as operationally efficient, which means that it is probably a better acquisition target.

COMMENT
COMMENT
November 7, 2017

Has gone through a number of iterations where it has been a beverage company, the bottlers are in and then out and then in again, and then into snack foods. Rather than the Coke side of things, you might be better with the Monster Beverage (MNST-Q) side. In a sense, you are leveraging the purchasing power of the Coca-Cola papers, because they are going to buy out Monster.

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Coca-Cola Company (KO-N)
November 7, 2017

Has gone through a number of iterations where it has been a beverage company, the bottlers are in and then out and then in again, and then into snack foods. Rather than the Coke side of things, you might be better with the Monster Beverage (MNST-Q) side. In a sense, you are leveraging the purchasing power of the Coca-Cola papers, because they are going to buy out Monster.

COMMENT
COMMENT
October 19, 2017

He would love to buy this if it got a lot cheaper. Has a great franchise. The problem with most consumer staples companies is that they are relatively expensive. The recent run-up is largely a function of the decline we have seen in the US$ versus other currencies. The company is structuring challenged in that you are going to see low single digit volume growth. They have tried to refranchise a lot of their bottlers, and are going through some transitional issues. Too expensive and too low a growth.

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Coca-Cola Company (KO-N)
October 19, 2017

He would love to buy this if it got a lot cheaper. Has a great franchise. The problem with most consumer staples companies is that they are relatively expensive. The recent run-up is largely a function of the decline we have seen in the US$ versus other currencies. The company is structuring challenged in that you are going to see low single digit volume growth. They have tried to refranchise a lot of their bottlers, and are going through some transitional issues. Too expensive and too low a growth.

COMMENT
COMMENT
October 12, 2017

Not a sector he favours at this time. However, this has been decent, relative to the other names in the space. Trading at about 23.5X Earnings with a 6%-7% growth rate, making it a bit expensive. It gives a 4X PEG ratio, which is the high end of its range. It’s forward PE of 23.5 is at the high end of its 10-year range.

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Coca-Cola Company (KO-N)
October 12, 2017

Not a sector he favours at this time. However, this has been decent, relative to the other names in the space. Trading at about 23.5X Earnings with a 6%-7% growth rate, making it a bit expensive. It gives a 4X PEG ratio, which is the high end of its range. It’s forward PE of 23.5 is at the high end of its 10-year range.

COMMENT
COMMENT
September 27, 2017

This has been diversifying into other beverages including water and new age beverages. Prefers PepsiCo (PEP-N) which can do foods with snack foods where their focus on growth is. In the short term, both are going to be a little weak. The consumer staples group has done well, but now people are looking to get a little more cyclical, so these 2 are running out of favour in the short term.

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Coca-Cola Company (KO-N)
September 27, 2017

This has been diversifying into other beverages including water and new age beverages. Prefers PepsiCo (PEP-N) which can do foods with snack foods where their focus on growth is. In the short term, both are going to be a little weak. The consumer staples group has done well, but now people are looking to get a little more cyclical, so these 2 are running out of favour in the short term.

COMMENT
COMMENT
August 2, 2017

Valuation is a little stretched. There is a strong correlation between this and the US$. They generate a lot of sales outside the US, so when the dollar weakens, this does relatively well. They are trying to become less capital intensive, so are getting rid of some of their bottling operations. When they sell those off, they should use that as an opportunity to improve their balance sheet. The carbonated soft drink business is struggling and you are probably going to see only about .05% growth during the next few years. If they focus on their balance sheet, they should be able to generate a modest amount of earnings growth going forward.

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Valuation is a little stretched. There is a strong correlation between this and the US$. They generate a lot of sales outside the US, so when the dollar weakens, this does relatively well. They are trying to become less capital intensive, so are getting rid of some of their bottling operations. When they sell those off, they should use that as an opportunity to improve their balance sheet. The carbonated soft drink business is struggling and you are probably going to see only about .05% growth during the next few years. If they focus on their balance sheet, they should be able to generate a modest amount of earnings growth going forward.

HOLD
HOLD
June 20, 2017

One of the world’s great brand names. They are gradually losing market share as people are consuming less. They’ve moved into other beverages. With global retail under pressure, they will be pressured a bit. For the next couple of years, he would prefer to be somewhere else. 3.3% dividend yield.

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One of the world’s great brand names. They are gradually losing market share as people are consuming less. They’ve moved into other beverages. With global retail under pressure, they will be pressured a bit. For the next couple of years, he would prefer to be somewhere else. 3.3% dividend yield.

WATCH
WATCH
June 12, 2017

It has been relatively flat. It is coming to the point where it stopped in 2016. It has to be proving itself to be breaking out and if it does that could be bullish. It is a neutral looking chart. $40 would be a good place to buy to trade the range.

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It has been relatively flat. It is coming to the point where it stopped in 2016. It has to be proving itself to be breaking out and if it does that could be bullish. It is a neutral looking chart. $40 would be a good place to buy to trade the range.

COMMENT
COMMENT
May 24, 2017

A very strong name. The real question is if they can transition from the soft drink business to the healthier side of the business. Recently they announced some layoffs. Good distribution, but you are going to have to see that transition to healthier snacks.

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A very strong name. The real question is if they can transition from the soft drink business to the healthier side of the business. Recently they announced some layoffs. Good distribution, but you are going to have to see that transition to healthier snacks.

PAST TOP PICK
PAST TOP PICK
May 17, 2017

(A Top Pick April 13/16. Down 1%.) This has underperformed over the last 12 months.

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(A Top Pick April 13/16. Down 1%.) This has underperformed over the last 12 months.

COMMENT
COMMENT
May 9, 2017

Coca-Cola (KO-N) or PepsiCo (PEP-N)? These are both struggling with the carbonated soft drinks side of things. There really hasn’t been much in terms of revenue growth for either. This company has a new CEO coming on board. They have some initiatives they are working on now, but it is going to take some time to grind through. She’ll just watch from the sidelines.

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Coca-Cola (KO-N) or PepsiCo (PEP-N)? These are both struggling with the carbonated soft drinks side of things. There really hasn’t been much in terms of revenue growth for either. This company has a new CEO coming on board. They have some initiatives they are working on now, but it is going to take some time to grind through. She’ll just watch from the sidelines.

DON'T BUY
DON'T BUY
May 1, 2017

It is 100% a drink company. Pepsi is more of a food company than a beverage company, which he prefers.

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It is 100% a drink company. Pepsi is more of a food company than a beverage company, which he prefers.

PAST TOP PICK
PAST TOP PICK
April 10, 2017

(A Top Pick March 16/16. Down 2%.) This really didn’t go anywhere to excite him. He now prefers Pepsi (PEP-N), which is a bit more dynamic.

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(A Top Pick March 16/16. Down 2%.) This really didn’t go anywhere to excite him. He now prefers Pepsi (PEP-N), which is a bit more dynamic.

HOLD
HOLD
March 29, 2017

Iconic brand with consistent return on equity. Buffet owns a large position. This is a buy, hold and forget-about stock. They spent decades building their distribution network and it is one of their strengths, besides their recipe.

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Iconic brand with consistent return on equity. Buffet owns a large position. This is a buy, hold and forget-about stock. They spent decades building their distribution network and it is one of their strengths, besides their recipe.

DON'T BUY
DON'T BUY
March 23, 2017

He is not a fan and prefers PEP-N. KO-N is almost exclusively a soft drink company. Soft drinks are under attack and in decline as people move more and more towards water. He does not care for the outlook. Pepsi gets most of its earnings from food – Lays and Quaker.

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He is not a fan and prefers PEP-N. KO-N is almost exclusively a soft drink company. Soft drinks are under attack and in decline as people move more and more towards water. He does not care for the outlook. Pepsi gets most of its earnings from food – Lays and Quaker.

DON'T BUY
DON'T BUY
March 16, 2017

A sort of serial under performer. From a fundamental basis, it hasn’t made much progress at all, on revenues, margins, earnings, cash flow. They are trying to move away from sugary water and to become healthier. Not doing as good a job as Pepsi has done, and it shows. There is so much more opportunity out there to buy good quality companies that are organically growing with great management and reasonably priced.

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A sort of serial under performer. From a fundamental basis, it hasn’t made much progress at all, on revenues, margins, earnings, cash flow. They are trying to move away from sugary water and to become healthier. Not doing as good a job as Pepsi has done, and it shows. There is so much more opportunity out there to buy good quality companies that are organically growing with great management and reasonably priced.

COMMENT
COMMENT
March 15, 2017

This typically does very well in the summer. Currently it is in a trading range. You want to watch this trading range, and if it starts to move above the range, it could be an interesting seasonal trade in about June right through until September or October.

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This typically does very well in the summer. Currently it is in a trading range. You want to watch this trading range, and if it starts to move above the range, it could be an interesting seasonal trade in about June right through until September or October.

DON'T BUY
DON'T BUY
February 17, 2017

It is a really tough business. It has a nice little rounded base on the 20 year chart. Deterioration happened in September in the industry. He does not see tones of catalysts. You have to buy when valuations are in your favour.

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Coca-Cola Company (KO-N)
February 17, 2017

It is a really tough business. It has a nice little rounded base on the 20 year chart. Deterioration happened in September in the industry. He does not see tones of catalysts. You have to buy when valuations are in your favour.

DON'T BUY
DON'T BUY
February 14, 2017

Sectors that started performing better than the rest of the market in June 2016, were transports, industrials, financials, technology and materials. These are the groups that are positively correlated to rising inflation and rising real interest rates. They are the most economically sensitive sectors. Earnings have been improving for the last three quarters. Where money is coming from and going to come are sectors that benefit in low interest rates and low growth, to sectors that benefit in higher growth and a little higher inflation. Consumer staples don’t fit that category, and are being used as a source of funds. Doesn’t think you will get hurt badly with this, but feels you are just missing out.

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Coca-Cola Company (KO-N)
February 14, 2017

Sectors that started performing better than the rest of the market in June 2016, were transports, industrials, financials, technology and materials. These are the groups that are positively correlated to rising inflation and rising real interest rates. They are the most economically sensitive sectors. Earnings have been improving for the last three quarters. Where money is coming from and going to come are sectors that benefit in low interest rates and low growth, to sectors that benefit in higher growth and a little higher inflation. Consumer staples don’t fit that category, and are being used as a source of funds. Doesn’t think you will get hurt badly with this, but feels you are just missing out.

DON'T BUY
DON'T BUY
December 7, 2016

A wonderful company, slow growth, very expensive and a low dividend yield. He wouldn’t own it. There are other areas of the market that are much more enticing. Dividend yield of 3.4%.

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Coca-Cola Company (KO-N)
December 7, 2016

A wonderful company, slow growth, very expensive and a low dividend yield. He wouldn’t own it. There are other areas of the market that are much more enticing. Dividend yield of 3.4%.

COMMENT
COMMENT
November 18, 2016

A consumer staple name, which will probably be affected by a couple of things. Since April it has been having lower lows and lower highs. It has broken below its 200-day moving average, and the 200-day moving average is starting to turn downwards. Trading at a forward PE of 20X earnings. Growth rate is probably mid-single digits, which gives it 4X on a PEG ratio basis, which is not cheap.

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Coca-Cola Company (KO-N)
November 18, 2016

A consumer staple name, which will probably be affected by a couple of things. Since April it has been having lower lows and lower highs. It has broken below its 200-day moving average, and the 200-day moving average is starting to turn downwards. Trading at a forward PE of 20X earnings. Growth rate is probably mid-single digits, which gives it 4X on a PEG ratio basis, which is not cheap.

DON'T BUY
DON'T BUY
November 8, 2016

This is a yesterday stock. It is almost 100% beverages with the vast majority being sugar water, a market that is in decline. They don’t have the diversification that PepsiCo (PEP-N) has, and he prefers PepsiCo.

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Coca-Cola Company (KO-N)
November 8, 2016

This is a yesterday stock. It is almost 100% beverages with the vast majority being sugar water, a market that is in decline. They don’t have the diversification that PepsiCo (PEP-N) has, and he prefers PepsiCo.

TOP PICK
TOP PICK
April 13, 2016

Something that he feels has staying power is the re-franchising of the bottlers. Six-seven years ago, there was a real disconnect between corporate selling the concentrates and the bottlers, and distribution was not working well. The company took them all in and fixed them. Bottling is a capital intensive business, so they are now going to push it back out and refranchise. There will be an increase in margins and less capital intensity. Dividend yield of 3.04%.

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Something that he feels has staying power is the re-franchising of the bottlers. Six-seven years ago, there was a real disconnect between corporate selling the concentrates and the bottlers, and distribution was not working well. The company took them all in and fixed them. Bottling is a capital intensive business, so they are now going to push it back out and refranchise. There will be an increase in margins and less capital intensity. Dividend yield of 3.04%.

TOP PICK
TOP PICK
March 16, 2016

Largest beverage company in the world, strong brand-driven assets that make competition coming in very difficult. He just entered this trade as it broke out from 2015 highs. Fantastic company with a good yield. The space is doing very well.

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Largest beverage company in the world, strong brand-driven assets that make competition coming in very difficult. He just entered this trade as it broke out from 2015 highs. Fantastic company with a good yield. The space is doing very well.

COMMENT
COMMENT
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that Pepsi has a more established non-beverage business. Coke has not done as well, but has a more established bottling business, with about 15% of business coming from this. It is a low margin high capital business and there are rumours that they will be getting out of this. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

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Coca-Cola Company (KO-N)
January 29, 2016

Coca-Cola (KO-N) or PepsiCo (PEP-N)? The key difference is that Pepsi has a more established non-beverage business. Coke has not done as well, but has a more established bottling business, with about 15% of business coming from this. It is a low margin high capital business and there are rumours that they will be getting out of this. Would prefer Dr. Pepper Snapple Group (DPS-N) which has about a 10th of the market share of these 2, so there is an opportunity to steal market share.

DON'T BUY
DON'T BUY
November 20, 2015

Coca-Cola (KO-N) or PepsiCo (PEP-N) for a long-term investment? He doesn’t care for either. His choice would be Dr. Pepper Snapple (DPS-N). This company generates one 3rd of its revenue from bottling, a capital intensive business. They took a 16% stake in Keurig Mountain which has really struggled. Carbonated beverage consumption is going down.

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Coca-Cola Company (KO-N)
November 20, 2015

Coca-Cola (KO-N) or PepsiCo (PEP-N) for a long-term investment? He doesn’t care for either. His choice would be Dr. Pepper Snapple (DPS-N). This company generates one 3rd of its revenue from bottling, a capital intensive business. They took a 16% stake in Keurig Mountain which has really struggled. Carbonated beverage consumption is going down.

DON'T BUY
DON'T BUY
October 29, 2015

Short? He doesn’t short individual stocks. This is trading at 21X forward earnings with the 10 year average of about 17X. A bit pricier at this point, especially with its growth rate. Also, their revenues are 60% from outside of the US. There would be some headwinds if the US$ continues to move higher. Doesn’t particularly like the name at this point. 3% dividend is pretty safe.

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Coca-Cola Company (KO-N)
October 29, 2015

Short? He doesn’t short individual stocks. This is trading at 21X forward earnings with the 10 year average of about 17X. A bit pricier at this point, especially with its growth rate. Also, their revenues are 60% from outside of the US. There would be some headwinds if the US$ continues to move higher. Doesn’t particularly like the name at this point. 3% dividend is pretty safe.

DON'T BUY
DON'T BUY
October 14, 2015

If you buy shares in companies that keep growing earnings then you will make money. He thinks they will be selling more of their product in 10 years. He prefers Doctor Pepper/Snapple because it is smaller. It is a potential take-over candidate.

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Coca-Cola Company (KO-N)
October 14, 2015

If you buy shares in companies that keep growing earnings then you will make money. He thinks they will be selling more of their product in 10 years. He prefers Doctor Pepper/Snapple because it is smaller. It is a potential take-over candidate.

DON'T BUY
DON'T BUY
August 27, 2015

Trading at a pretty high valuation. 19.5X forward earnings, but more important its 6.5% growth rate is pretty weak. 55% of revenues are coming from outside of North America.

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Coca-Cola Company (KO-N)
August 27, 2015

Trading at a pretty high valuation. 19.5X forward earnings, but more important its 6.5% growth rate is pretty weak. 55% of revenues are coming from outside of North America.

COMMENT
COMMENT
July 14, 2015

This has been range bound longer than the S&P has. Because of this, you treat it accordingly and buy it when it is in the $39 area and sell somewhere around the mid-$40.

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This has been range bound longer than the S&P has. Because of this, you treat it accordingly and buy it when it is in the $39 area and sell somewhere around the mid-$40.

HOLD
HOLD
June 9, 2015

(Market Call Minute.) There are better companies to buy within the consumer space. However, they are participating in the growth in emerging markets.

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(Market Call Minute.) There are better companies to buy within the consumer space. However, they are participating in the growth in emerging markets.

DON'T BUY
DON'T BUY
June 9, 2015

Really hasn’t been a great performer for a long, long period of time. The problem is that they are selling sugar water, and people are drinking less and less of that. They make $.005 a can, and that is getting more and more challenging. They got in the water business in a big way, which is turning out to be a bit of a problem with more and more municipalities pushing back against bottled water.

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Really hasn’t been a great performer for a long, long period of time. The problem is that they are selling sugar water, and people are drinking less and less of that. They make $.005 a can, and that is getting more and more challenging. They got in the water business in a big way, which is turning out to be a bit of a problem with more and more municipalities pushing back against bottled water.

COMMENT
COMMENT
April 20, 2015

There are worse places to be than in this. Growth has slowed and there are not a lot of margins going forward, but they continue to increase the dividend and buy back shares, and probably 10 years from now it will be double from where it is today. 3.2% dividend yield.

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There are worse places to be than in this. Growth has slowed and there are not a lot of margins going forward, but they continue to increase the dividend and buy back shares, and probably 10 years from now it will be double from where it is today. 3.2% dividend yield.

COMMENT
COMMENT
April 14, 2015

A global company with strong brands. Has cash and pays a relatively decent dividend. It is very well positioned in emerging markets, so not a lot of room to expand. Also, the category they are in is declining in developed markets.

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A global company with strong brands. Has cash and pays a relatively decent dividend. It is very well positioned in emerging markets, so not a lot of room to expand. Also, the category they are in is declining in developed markets.

COMMENT
COMMENT
February 27, 2015

Pepsi (PEP-N) or Coke (KO-N)? Year-over-year carbonated beverage sales are down about 9%, which doesn’t bode well for either name. To combat that they have diversified away by making acquisitions. This one has been going into tea companies, coconut water and even coffee. His preference is Dr Pepper Snapple (DPS-N) which has Canada Dry, Crush, A & W Root Beer. This has very little market share outside of North America and their more specific target is into Mexico, the highest soda consumption capital globally. They are gaining traction there.

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Coca-Cola Company (KO-N)
February 27, 2015

Pepsi (PEP-N) or Coke (KO-N)? Year-over-year carbonated beverage sales are down about 9%, which doesn’t bode well for either name. To combat that they have diversified away by making acquisitions. This one has been going into tea companies, coconut water and even coffee. His preference is Dr Pepper Snapple (DPS-N) which has Canada Dry, Crush, A & W Root Beer. This has very little market share outside of North America and their more specific target is into Mexico, the highest soda consumption capital globally. They are gaining traction there.

COMMENT
COMMENT
February 27, 2015

This is a lower growth type of name. What concerns him is that they are 55% dependent on international revenues. With the soaring US$, that will certainly act as a headwind towards revenues and earnings.

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Coca-Cola Company (KO-N)
February 27, 2015

This is a lower growth type of name. What concerns him is that they are 55% dependent on international revenues. With the soaring US$, that will certainly act as a headwind towards revenues and earnings.

COMMENT
COMMENT
January 19, 2015

PepsiCo (PEP-N) or Coke (KO-N)? PepsiCo would be the best. The International side is smaller on soft drinks, but that is a growth area. Also, Pepsi has diversification through their Frito-Lay side. Also, likes their diversification away from soft drinks.

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Coca-Cola Company (KO-N)
January 19, 2015

PepsiCo (PEP-N) or Coke (KO-N)? PepsiCo would be the best. The International side is smaller on soft drinks, but that is a growth area. Also, Pepsi has diversification through their Frito-Lay side. Also, likes their diversification away from soft drinks.

DON'T BUY
DON'T BUY
October 21, 2014

Thinks growth is really being compromised. Look at what Pepsi’s strategy has been in terms of diversification and adding product. The core market of Coca-Cola has really slowed down. They haven’t diversified enough into other product growth areas to upset that slowdown. Multiple is still relatively high.

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Coca-Cola Company (KO-N)
October 21, 2014

Thinks growth is really being compromised. Look at what Pepsi’s strategy has been in terms of diversification and adding product. The core market of Coca-Cola has really slowed down. They haven’t diversified enough into other product growth areas to upset that slowdown. Multiple is still relatively high.