Fri, Sep. 16, 10:21 AM
- Credit Suisse names its favorite stocks in the beverage sector and cautions on others with a wave of initiations.
- The investment firm starts off coverage on Monster Beverage (MNST -0.4%), Dr. Pepper Snapple (DPS), and PepsiCo (PEP -0.4%) with Outperform ratings.
- Neutral ratings filter down on Coca-Cola (KO -0.6%) and Constellation Brands (STZ -1.4%).
- CS hangs an Underperform rating on Boston Beer (SAM -1.2%).
- Forward PE ratios on the group: Monster 30.8, Dr. Pepper 20.6, PepsiCo 20.5, Coca-Cola 21.1, Constellations Brands 23.4, Boston Beer 23.2.
Thu, Sep. 15, 5:01 AM
- The American Beverage Association is suing to block Philadelphia's soft drinks tax, marking the latest clash between the soda industry and public officials seeking to boost revenue and combat health risks.
- In June, Philly became the largest U.S. city to approve a volume-based tax of 1.5%-per-ounce on sugar sweetened beverages.
- Voters in San Francisco and at least three other places will vote in November on whether to impose similar levies.
- Related stocks: KO, PEP, DPS, MNST, FIZZ, SBUX, UL, PG
Wed, Sep. 14, 9:39 AM
- In a fresh note to investors, Susquehanna analyst Pablo Zunaic tackles the huge question of if PepsiCo (NYSE:PEP) or Coca-Cola (NYSE:KO) will be the next major target for Anheuser-Busch InBev (NYSE:BUD) down the road.
- Though it's highly speculative at this point, PepsiCo appears as the more logical choice if the pros and cons are lined up. Snippets from Zuanic's note are posted below.
- On accretion value: "An acquisition of PEP drinks would be over 20% EPS accretive (one quarter stock funded), while a bid for KO would not (all cash a KO bid would push gearing to 8x)."
- On global markets: "True, overseas KO is much larger than PEP, but that may be a moot point as the KO overseas business is mainly in the hands of independent bottlers (so is PEP’s except for Russia). But we think PEP bottlers in markets like Mexico, China, India, and Canada, could be more reasonable acquisition targets for BUD down the road (than KO bottlers) and would actually provide relevant scale up benefits."
- On distribution: "In terms of bringing scale to its beer distributors we note KO and PEP are similar in size in the US (in terms of end unit cases of NARTDs), but more importantly the PEP drinks business is 75% PEP owned while by end of 2017 KO’s US operating business (bottling and distribution) will all be in the hands of independent bottlers."
- On the Buffett factor: "Those expecting a bid for KO say so in part because of the Warren Buffet presence (holder of a 9.3% stake in KO), but would he really want that to be his legacy (i.e., the man that sold the Coke?)."
- Current market caps: BUD $194B, KO $178B, PEP $149B.
- Name check: Financing the deal is one matter, but negotiating a new corporate name for the mega-beverage entity could be just as engaging.
Tue, Sep. 6, 11:27 AM
- August monthly performance was: -0.88%
- 52-week performance vs. the S&P 500 is: -6%
- No dividends were paid in August
- Top 10 Holdings as of 6/30/2016: General Mills Inc (GIS): 3.56363%, AT&T Inc (T): 3.10141%, Coca-Cola Co (KO): 2.92358%, Campbell Soup Co (CPB): 2.52377%, Exelon Corp (EXC): 2.36382%, Suncor Energy Inc (SU): 2.32307%, The Hartford Financial Services Group Inc (HIG): 2.28103%, PPL Corp (PPL): 2.13051%, The Kraft Heinz Co (KHC): 2.07219%, Heineken NV (OTCQX:HINKF): 1.90962%
Thu, Sep. 1, 9:35 AM| Thu, Sep. 1, 9:35 AM | 11 Comments
Mon, Aug. 29, 7:59 AM
- Soda tax proposals will be on the ballot in three cities in the San Francisco Bay area this November and likely in Boulder, Colorado as well.
- The soda manufacturing industry is spending heavily in San Francisco, Oakland, Albany, and Boulder in an effort to defeat the measures. Unlike some votes in the past in the U.S. that weren't approved, only a simple majority is needed at the November election.
- Related stocks: KO, PEP, DPS, MNST, FIZZ.
Fri, Aug. 19, 1:31 PM| Fri, Aug. 19, 1:31 PM | 9 Comments
Mon, Aug. 8, 5:52 AM
- The Rio 2016 Olympics are shaping up to be key event in the sponsorship calendar with brands battling it out for a slice of the sporting pie.
- Among the partners, sponsors and supporters: KO, DOW, GE, MCD, PG, V, CSCO
- The U.S. has taken an early lead in the medal tallies boosted by strong results from swimmers Michael Phelps and Katie Ledecky.
Tue, Aug. 2, 10:03 AM
- July monthly performance was: +1.63%
- 52-week performance vs. the S&P 500 is: +5%
- No dividends were paid in July
- Top 10 Holdings as of 3/31/2016: General Mills Inc (GIS): 3.41805%, AT&T Inc (T): 3.01284%, Coca-Cola Co (KO): 2.95236%, Campbell Soup Co (CPB): 2.78964%, Exelon Corp (EXC): 2.28957%, The Hartford Financial Services Group Inc (HIG): 2.24568%, Heineken NV (OTCQX:HINKF): 2.15959%, The Kraft Heinz Co (KHC): 1.97668%, Suncor Energy Inc (SU): 1.86666%, PPL Corp (PPL): 1.86557%
Tue, Aug. 2, 9:43 AM
- July monthly performance was: +1.9%
- 52-week performance vs. the S&P 500 is: +10%
- $0.23 in dividends were paid in July
- Top 10 Holdings as of 6/30/2016: AT&T Inc (T): 5.65149%, Exxon Mobil Corp (XOM): 5.47044%, Verizon Communications Inc (VZ): 4.40575%, Chevron Corp (CVX): 3.75675%, General Electric Co (GE): 3.47376%, Procter & Gamble Co (PG): 3.01991%, Wal-Mart Stores Inc (WMT): 2.97257%, Pfizer Inc (PFE): 2.9201%, Philip Morris International Inc (PM): 2.86459%, Coca-Cola Co (KO): 2.36751%
Wed, Jul. 27, 7:13 AM
- Coca-Cola (NYSE:KO) reports organic revenue increased 3% in Q2.
- Global volume was flat during the quarter. Price/mix was up 3%, while currency impacted sales negatively by 3%. The company says it gained global market share in the nonalcoholic ready-to-drink market.
- Eurasia/Africa: Unit case volume -1%, Price/Mix +7%, F/X -10%.
- Europe: Unit case volume flat, Price/Mix +3%, F/X flat.
- Latin America: Unit case volume flat, Price/Mix +15%, F/X -20%.
- North America: Unit case volume +1%, Price/Mix +2%, F/X flat.
- Asia/Pacific: Unit case volume +1%, Price/Mix flat, F/X +1%.
- Looking ahead, Coca-Cola sees organic revenue growing 3% for the full year.
- Previously: Coca-Cola beats by $0.02, misses on revenue (July 27)
- KO -1.31% premarket to $44.29.
Wed, Jul. 27, 6:58 AM
Tue, Jul. 26, 5:30 PM
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Thu, Jul. 21, 10:03 AM
Fri, Jul. 15, 1:57 PM
- Coca-Cola (KO -0.3%) says its Brazilian unit has forged a partnership agreement with coffee exporter Tristao Companhia de Comercio Exterior which will allow it sell packaged arabica coffee beans in Brazil.
- Coca-Cola Brasil plans to launch a specialty coffee line called Leao aimed at high-end coffee drinkers.
- Brazil is a top producer of arabica beans, although in the past most have been exported out of the region.
Wed, Jul. 13, 11:35 AM
- It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
- Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
- Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
- "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
- Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
- Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.