So I know some people in this group hate these questions, but I’ve done my research on KO and I’m stuck. Trusted brand. Not going anywhere but profits have been on the decline for some time. Doesn’t anyone have any views on KO for current and future of the company.
Ken Faulkenberry: Great company in the PAST. Very expensive today given its recent negative growth and poor prospects for future growth. This is my analysis: http://dividendvaluebuilder.com/coca-cola-ko-stock-analysis/
Coca-Cola (KO) Stock Analysis – Dividend Value Builder
Miguel Alejandro: Damn. Thanks Ken. Seems like they are not sustainable.
Ryan Reale: When looking at the companies which make up the dow, I believe this could be the next stock that could follow a path similar to ge.
Shawn Ewer: I would go with Pep before KO due to the food side of PEP.
Miguel Alejandro: $PEP is a little out of my price range. $DIS is my big around 100 dollar stock.
Shawn Ewer: Miguel Alejandro KO at p/e of 39 is more expensive then PEP at 32. PPS is irrelevant to decide which one. You just buy 1/3 less PEP since the PPS is 3x. Now KO has a higher yield for now.
Matt Aldridge: You have to throw out pe listings on web sites right now due to one time charges taken in q4 for tax reform. That said, even with adjusted pe KO is still expensive.
Rob Orr: I’m not very good at analyzing companies -I’m getting better- but since I’m thinking long-term (20-30 years) I ask if I think a company is likely to be around for that long. I can’t tell if KO will go the way of GE, but I do believe it will be around. As for ‘when’ to buy, that’s a different question.
Tom Pronk: Rob, what is it your struggling with when you are analyzing companies if I may ask? I’m in the process of making a blogpost about this topic so maybe I can incorporate your struggles into the blogpost. Also if you need help, let me know, maybe I can help.
Rob Orr: Tom Pronk In part it’s simply that I’m new to long-term investing and there’s a lot to learn. Another part is that I have trouble finding laymen’s definitions and usage of the metrics of valuation……… For example, I understand what the P/E ratio…See more
Tom Pronk: Rob Orr , I send you a PM explaining those metrics
Tom Pronk: I just realized it might also help others so this is what I replied to Rob’s questions concerning metrics:1. P/E Ratio. This is the price to earnings ratio. In other words the price you are paying for $1 of earnings per share. So let’s say the earnin…See more
Clint Douzat: Will probably still be dominant in 10-20 years at least. But still, the dip in their business performance over the past few years plus the growing trend (at least cultural trend, if not participated in by every segment of society) away from those kinds of sugary drinks makes it hard for me to go big on KO. Great brand, great product, great dividend, will probably be just fine, but I’d like to see better performance for a company who’s eggs are solely in the sugary drink basket
Eric Moreno: Ko own products from water, milk, juice, organic juice, coffee,energy drinks, Coconut water, and alcohol.
Clint Douzat: Right and I hope they pursue those even more and have a lot of success in those areas.
Clint Douzat: Also, who hates these questions??? This is the good stuff. Trading ideas back and forth is what it’s all about
Miguel Alejandro: There is always 5-6 people who comment about “do your own research and figure it out on your own”. I don’t post much. I like to read all the post though. 99% of the time when someone ask this kind of question someone who has been in the market for 10+ years comes in and says something rude cause they couldn’t just keep scrolling.
Rob Orr: Miguel Alejandro Nah, the longer someone’s been in the markets the happier he is to help. It’s just the frustrated people who haven’t had much success who can’t be bothered.
Clint Douzat: Losers. I’m new to the group so have no authority but your post is literally what I hoped to see more of and why I joined
Miguel Alejandro: Glad to hear that Clint
Shawn Ewer: Clint Douzat I agree this is the type of question I Iike as well.
Joe Dooley: I’m not a very technical investor. I could do a lot to brush up my evaluating skills. But I would never bash someone over what some might consider a “novice” or “general question. When i’m ready to brush up on my skills. I would probably read a couple “Seeking Alpha” articles & post again on here.
Tom Tinkle: Miguel Alejandro People that come in and say something rude are the only ones that understand how stupid the question is and how no one can answer it. All your seeing here are opinions, they mean nothing. Unless the trader can define his or he goals asking these questions are just a waste of everyones time..
Miguel Alejandro: Ah yes the first jackass that I was talking about earlier. Mr. Tinkle I would like to point out that I used the word “view”, as in someone’s perception of something. Just like your perception is that this is a waste of time. That’s your “view”. I’ve se…See more
Clint Douzat: Imagine being so lame that you see a post where someone is genuinely asking for your thoughts and it makes you mad and you don’t do the reasonable thing and keep scrolling, but instead you leave comments about how only people who think the post is stupid really understands what’s going on and you need to stop wasting everyone’s time.
Miguel Alejandro: Called it. There’s always one. Didn’t read the post well. Just had to come in and say some dumb shit.
Tom Pronk: Miguel Alejandro, what might help is to post your situation as well. Like age, goals etc. What might be a good fit for one can be a bad fit for others. Also see my reply to Rob, if there is anything you are struggling with on your own, let me know, maybe I can help (obviously the same applies for the others). And of course, always just post your questions, that is how people advance on any subject.
Joe Dooley: Clint Douzat from my experience, I’ve found that this an excellent group. Lots of different people with different stories, great info & opinions. Credit to Wade & the other moderators.
Jeffery L. Elliott: All soft drinks cause diabetes. High Fructose Corn Syrup ingredient. I haven’t had a soda in over two years.
Irene Toh: Hmm.. that’s not the question asked.., lol. Jk
Jeffery L. Elliott: Irene Toh maybe this will prevent someone from being a slave to the medical industry with insulin dependency.
Frank Rahlfs: Yep not the subject. Also not all soft drinks cause diabetes.
Jeffery L. Elliott: Frank Rahlfs everything that contains HFCS which is in about 99.9% of the soft drinks. Plus, 70+g of sugar per serving is not good for your pancreas either.
Frank Rahlfs: Jeff L. Elliott it’s called fructose now they dropped the rest of it. By the way there are soft drinks out there that do not have fructose in it.
JT Brock: The company sell a lot more than just soda
Tom Tinkle: Thats helpful advise Jeff L. Elliott.. LOL
Bill Degnan: I think KO will be around years from now. But, I may sell and go with Pepsi. I agree that Pepsi’s food business is a plus.
Eric Moreno: Ko is in the alcohol business.
JT Brock: Eric Moreno a very very very tiny portion of KO, and Only in Japan haha
Elmer Williamson: I have both
Bill Degnan: Took another look today. I will hold for now. May buy PEP though.
Joseph Wathen: It’s always had a high PE but they had a 1 time 3.6B tax bill to bring money back that has the PE looking crazy high but that will go down a ton when they report this month.I think there is better stocks to buy though
Joseph Wathen: Also it was really 4.6B but they deferred 1B so don’t know if they put that on this quarter or the 4th anyway the PE is not reliable always look at the recent past earnings
Andy Pickett: Society is focusing more and more on being healthy. KO will be around for a long time but I’m not sure how much it will grow. I think there are better stocks out there.
Joseph Wathen: They’ve been buying healthy drinks but need to grow them
JT Brock: They sell healthy drinks now too
George Kubantsev: KO was in the last BladeRunner movie:) so it’s gonna be there. Just don’t see the reason to pick it up now as it has more downside IMO. But will add to my RRSP for sure.
Chad Atkinson: I’m weird…I like Coke and actually just added last week. Yes they are struggling right now…but they no doubt have the best world wide distribution network in the world. They could buy any product and get it to more corners of the world than any other company. They just need to figure out what that is. Recently just released their first alcoholic drink in Japan…let’s see how that goes. In the meantime I’ll still add while so many are negative on them. That’s my .02¢ which might be worth .01¢. Good luck with your long term investing.
Colin Till: KO – Coca Cola Co (The) Analysis : Dividend paid, volume good, debt high increasing, turnover reducing, EPS reducing, PE flat high, profit reducing, ROE flat reducing, ROCE reducing, BVPS reducing, Cash-Flow reducing, 3 month price trend is down, last buy signal was in July 2017, no sell signals since then – would hold.
Helen Sriubiskis: Colin Till I appreciate your posting of these analyses.
Colin Till: Your’e welcome, happy to contribute to the group.
Christian Mardones: thats my “feeling” on coke , profits are reducing due to people getting aware of the side effects of fast food culture everywere.
Brent Meadors: I prefer PEP over KO, more diversified and already in the snack area so could see it move towards “healthy alternatives” whereas I think of Coke as a Joke ;-)Lots of people moving away from the sugary drinks.
Bryan Witterholt: I can’t think of any reason to buy KO over PEP, especially at current prices. I own both but will probably eventually moving my KO over to more PEP.
Coelho Zé: Hold for a 100 years
Miguel Alejandro: You’re the only one to say so. May I ask why?
Coelho Zé: Coke will be around forever, as long as buffet holds onto it your good
George Kubantsev: Coelho Zé you’re contradicting yourself, Buffet will die in few year, what’s next?:) I’m sure KO will stay around for year, however IMO if it doesn’t turn around it will be a slowly decaying company.
George Kubantsev: *years
Coelho Zé: George Kubantsev than Coke is not for you.. Berkshire Hathaway will still be around for as long as coke is around.
Rusty Jackson: I’ve been long KO since 2012 (reinvesting my dividends that whole time)… my cost basis is $33.24. I’m under no illusions concerning KO and it’s growth prospects. I understand the headwinds the company faces. However, KO serves a purpose in my portfolio, as a safe, steady’s solid SWAN stock. KO sells 2 billion (BILLION) drinks per day – PER FREAKING DAY! Internationally people ain’t worried two bits about high fructose corn syrup, or sugary drinks. I’ve been to more than 20 countries… some of the most remote places on the planet… Mozambique, Swaziland, Nepal, remote areas of China… and guess what, I ALWAYS found a KO product
Frank Rahlfs: Yep only in America. Where those are so concern about others.
Steven Heller: IMO, the decline in sales is only due to increased competition in the drink market. I honestly believe they’re not going anywhere anytime soon. If I’m not mistaken, they own a large amount of shares in Monster Energy, so in a weird way they’re profiting off their competition.