Morgan Stanley cautious on Coca-Cola


Morgan Stanley doesn't think the recent decline in Coca-Cola (KO +0.6%) provides investors an attractive entry point on concerns the increased marketing spend from the compny will take time to drive volume higher.

The investment firm thinks consensus revenue estimates are too high with many of Coca-Cola's headwinds (F/X, macro, emerging markets) still very much in play.

Shares of KO are down 9.4% YTD.

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Comments (9)
  • BAHAMAS1
    , contributor
    Comments (5095) | Send Message
     
    How many shares does Morgan wish to purchase on these lame comments ?

     

    Same old crap, in 2 to 3 months ,after they bot for themselves and high rate clients, they will upgrade KO.
    24 Feb 2014, 11:25 AM Reply Like
  • isenior
    , contributor
    Comments (27) | Send Message
     
    52 annual dividen increases.......
    24 Feb 2014, 01:18 PM Reply Like
  • bikeguy
    , contributor
    Comments (18) | Send Message
     
    So what is Morgans entry point??
    24 Feb 2014, 02:50 PM Reply Like
  • mosheoskar
    , contributor
    Comments (68) | Send Message
     
    36
    24 Feb 2014, 03:29 PM Reply Like
  • slcUTAH
    , contributor
    Comments (542) | Send Message
     
    YYYAAAWWWNNN.

     

    Cheers.
    24 Feb 2014, 03:50 PM Reply Like
  • Tim McAleenan Jr.
    , contributor
    Comments (1999) | Send Message
     
    I wish these investment houses would be honest and acknowledge that Coca-Cola's see-through earnings growth is currently constrained by two temporary phenomena: (1) bottling transactions, and (2) unfavorable currency translations when you convert profits back to the U.S. dollar.

     

    Those are about as temporary as headwinds can get.

     

    Even with these problems, Coca-Cola is still going to increase net profits over the course of this year. How many stocks out there can have "bad" years and still grow profits by 5%, 6%, or 7%?

     

    This is a gilt-edged holding for people that are interested in building sustainable, intergenerational wealth for the super long-term, and I have no problem ignoring this kind of Morgan Stanley nonsense. It's my empathy for honest, well-meaning folks that take these trash recommendations seriously that bothers me.
    25 Feb 2014, 12:16 AM Reply Like
  • lipzig
    , contributor
    Comment (1) | Send Message
     
    are there any forever stocks left ?

     

    If so, one would want to add Coke to this list.

     

    Although they will surely solve their operational problems, they face a massive headwind of medical demographics ( obesity,Diabetes) over which they have no control and very little room to out manouvre.
    25 Feb 2014, 01:54 AM Reply Like
  • CassandraSees
    , contributor
    Comments (591) | Send Message
     
    KO could make a guideline suggestion to it's customers that they would be well advised to moderate their intake, lets say 8 oz rather than a 32 oz big gulp at a meal - - Look at pictures of consumers from the 1950's and the size of drinks that they had then, compared to what you see today - - Anything done to excess is harmful to the body, including water if drunk in gallons per day
    25 Feb 2014, 10:11 AM Reply Like
  • BAHAMAS1
    , contributor
    Comments (5095) | Send Message
     
    I have one further thing to say about this subject and I truly believe it , especially since it involves such a well managed portfolio stalwart as KO...

     

    "This too shall pass" !

     

    Buy more KO and ,as Coca-Cola says , Buy HAPPINESS !
    25 Feb 2014, 09:27 AM Reply Like
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