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Alexander J. Poulos

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  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Nicholas,

    Well said, however I suspect most don't realize this.
    Apr 1 12:43 PM | 1 Like Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Here is the single greatest threat to KO, slowing soda sales.

    Breaking down soda sales • 6:58 AM

    Sales of Diet Pepsi (PEP) fell 6.9% from 2012 to 2013, according to Beverage-Digest.
    The drop in sales was nearly the same for Diet Coke (KO) with a 6.8% decline over the same period.
    Regular Coke performed much better with only a 0.5% dip in sales.
    Overall, the soda industry saw total CSD dollars fall 1% despite a 2% rise in prices. Analysts think the trend of slipping volume in the soda business could continue.
    Apr 1 09:33 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Dividend,

    Keep in mind to outperform you need to do exactly that as the fortune of individual companies can rise and fall. Even Buffet trades in and out shares as evidenced by the changing nature of the holdings in Berkshire Hathaway over the years.
    Apr 1 09:30 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Dividend Sleuth,

    The best advice I can give for selling shares to purchase others is as follows. As I have detailed in my quarterly reviews, I will sell shares when I believe they are fully valued with limited upside to purchase others with higher overall upside. Such was the case when at the end of December I sold PAYX an excellent company. The price was quite high, growth prospects are on the lower side and dividend bumps would be anemic as the shares have a payout ratio over 80%. I purchased T with the proceeds as the combination of dividends and share reductions was to tempting to pass up. Well PAYX went down a bit, yet T went down more which is a similar experience to what you have described. If you give it time and your research and logic is sound the value will eventually be "found" and reflected in the share price. I hope this helps, if you get a chance read my quarterly review and look at the shares sold and the ones purchased. If the shares sold where still held I would be up a bit more however I suspect the new ones will appreciate far more than those that were dispatched. Thanks for reading and commenting.
    Apr 1 08:51 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    HackFab,

    Hopefully my experience with C will turn out different than yours as I went long last week. I fully agree with your comments about having faith in management a key reason to stay invested. Thanks for reading and commenting.
    Apr 1 08:41 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Topcat56,

    WMT themselves has acknowledge the pressure they are getting from the dollar store format as they lure some of their core customers away with cheaper products. The dollar stores may not carry the same assortment week to week, however what they carry tends to be closeout merchandise which can yield a significant savings to a customer. The dollar stores have a far smaller footprint which makes them profitable with lower sales. The smaller stores are easier to navigate especially for the elderly who may find the super Walmarts to be quite daunting. Wal-mart has its place in retailing and so does the dollar store format. In the dollar store format case, their is still significant growth ahead as the main competitors (Dollar General, Dollar Tree and Family Dollar) attempt to reach saturation. It will take at least 3-5 years before we hit saturation level which should yield some significant capital gains. Once they hit saturation (in DG case 14-15k stores or roughly 3-4k more) they may feel compelled to start paying a dividend as the money earmarked for expansion can be returned to shareholders. Time will tell and I will be along for the ride. Thanks for reading and sharing your observations.
    Apr 1 08:39 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    George,

    No offense taken my friend, quite to the contrary I enjoyed the conversation as did the readers. I admire your passion on the subject, it was refreshing to hear. By the way, I am enjoying a Coke as I am typing this response.
    Apr 1 08:30 AM | 2 Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    bassplayer142,

    I looked at Family dollar yet after reading up a bit more on them it became clear that DG is the best operator in this space. I realize others need the dividend for daily expenses and the move can't be made for those reasons. In my case they aren't so I can look for a higher growth play that doesn't pay a dividend out. Thanks for reading and commenting.
    Apr 1 08:27 AM | 2 Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    DGJ,

    Well said, also the role of share repurchases has an outsized impact on returns.
    Apr 1 08:24 AM | 1 Like Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    doc7,

    I don't see this scenario for the following reason. As we have learned from the Clinton regime when they took on Big Tobacco and won a master settlement, the government relies on them for a significant portion of their tax base especially on the local level. Politicians are will never cripple such a large tax producer because they will have to make up the revenue loss by raising taxes on the populace. As politicians from both parties are keenly aware, tax hikes are more hazardous for your political career than tobacco. (Sorry I couldn't resist the pun). Tobacco sales will continue to be alive and well. By ceding tobacco sales, CVS will reduce store traffic further along with the ancillary sales that go with it. Notice how Walgreens isn't exactly rushing in to follow. Thanks for reading and commenting.
    Apr 1 08:22 AM | 1 Like Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    topper1296,

    I don't fear the expansion of Wal-mart express as it is a reactionary move to attempt to combat the threat to WMT that the dollar store format presents. They have become a category killer putting pressure on WMT by drawing their core shopper away with cheaper goods if you can believe it. I fully agree with your comments about lack of activity by children today. Thanks for reading and commenting.
    Apr 1 12:03 AM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    George,

    I thank you again for your passionate plea, however I will sit this out for now. I will continue to monitor the situation and perhaps at some point in the future, I may initiate a position in KO again. When I do, I hope you will read the article and enhance it by adding some additional comments to it. Thanks again, Alex.
    Apr 1 12:00 AM | 2 Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    nochance,

    The powrer of compounding certainly works in your favor whether you achieve it by reinvesting dividends or stringing together a number of winning trades. I certainly won't dispute this. As detailed above I view DG as a vehicle for higher overall returns than KO. I prefer the oil companies for DRIp plays as their dividend is much higher and growth potential more clearly defined. Absent a meaningful share repurchase plan, KO's 3.16% is just not that appealing. Thanks for reading and commenting.
    Mar 31 09:53 PM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    slam stocks,

    Well if the compensation plan goes through (I expect it will) we shall see the abuse in a few years as the share count doesn't budge. Time will tell, Thanks for reading and commenting.
    Mar 31 09:49 PM | Likes Like |Link to Comment
  • Saying Goodbye To Coca-Cola, Time To Move On [View article]
    Andysud,

    Not really, the downturn was weather related as same store sales growth and expansion continue at a nice pace. shares are out of favor and trading at a below market value for a defensive company that is growing at an above market rate. Look again at the company and the category they compete in, they are one of the few retailers that actually does Better in a recession. Very defensive play. Thanks for reading and commenting.
    Mar 31 09:47 PM | Likes Like |Link to Comment
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