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General Mills And Coca-Cola Have Much In Common
- While General Mills and Coca-Cola have grown exceptionally for decades, they have both stumbled during the last 2 years.
- Amid lack of growth projects, the managements of the two companies have initiated wide restructuring programs in order to reduce their costs.
- The article also details some other policies of the managements of the two companies.
Coca-Cola Misses Estimates As Management Is Scrutinized
Coca-Cola: The Strong Dollar Takes The Fizzle Out Of This Dividend ChampAlbert Alfonso • Tue, Dec. 16
- Coca-Cola is projecting a weak 2015.
- The strong dollar and restructuring costs are mostly to blame.
- At current prices, Coca-Cola yields right around 3%.
- KO has failed to grow in the last 2 years, with lack of growth expected next year as well.
- The article analyzes all the issues and moves of the company, which were discussed in the conference call after the earnings release and in the presentation yesterday.
- While the shareholders should have minimum expectations from the restructuring initiative of KO, the deals that take advantage of the unique distribution system of the company are quite promising.
- Management’s evasion of core problem remains troubling.
- Long-term revenue decline not inevitable.
- Comparison with PepsiCo reveals over-valuation.
- Despite recent price drop, my Levered Returns model still predicts some downside.
Dividend Aristocrats In Focus Part 53 Of 54: Coca-Cola (KO)
- Coca-Cola has 17 billion-dollar brands.
- The amount Coca-Cola spends on advertising per year may shock you.
- See what makes Coca-Cola the leading global beverage business.
- KO has suffered from a shrinking soda market in recent years.
- Attempts to jump start growth have done little to stem the tide of falling soda sales.
- Coke's valuation is stretched thin and is too risky despite the dividend.
Reflections On Coca-Cola: Lessons Learned From The Seeking Alpha Dividend Community
- I respond to a recent article I wrote about possibly selling my core position in Coca-Cola and the responses that it generated.
- DGI life lessons broken down and contemplated.
- I can't say enough about my appreciation for the DGI community here at SA, and this piece shows why.
- Coca-Cola is entering the dairy sector with its own brand of premium high quality milk called Fairlife, with hopes to revive sales that have flat lined.
- Coca-Cola reported diluted earnings per share of $0.48 compared to $0.54 per share in the year ago quarter. Results were lower than analysts’ consensus of $0.53 per share.
- The company has planned on engaging in a rigorous cost cutting program as a result, planning to slash up to $3 billion a year from its operating costs.
- Its milk processing methods will incorporate a new proprietary ultra filtering process which heightens protein content and brings down lactose content in milk.
- Currently, existing investors should hold on to their stock as the company has positioned itself for long term growth via its entry into the dairy sector.
They Say The End Is Near: It's 2004 All Over Again For Coca-Cola
- In 2004, investor sentiment toward Coca-Cola hit an extreme low capped by a brutal editorial against KO management in the New York Times.
- We have seen similar levels of negativity over the past month.
- Critics are focused solely on weakness in developed markets; strength in developing markets will more than make up for this.
- The long-term opportunity in KO today resembles that of 2004.
Why I'm Considering Selling My Core Position In Coca-Cola
- I discuss what I look for when buying a stock and look at whether or not Coke still meets those requirements.
- I explain why, even as a dividend growth invester, I focus on the value of my holdings rather than primarily on income.
- I examine the potential over-valued nature of KO using several F.A.S.T. Graphs.
Rich Cash Return Policy Key Feature In Coca-Cola's Bullish Thesis
- Product innovations, aggressive advertisements and effective partnership agreements supporting financial performance.
- Company has accelerated cost-cutting efforts, keeping margins and bottom-line healthy in long run.
- Has attractive cash return policy, supported by strong cash flows.
David Winters Ravages Coca-Cola's Board Once Again, Stating The Dividend Is At Risk
- David Winters is at it again, taking offense to Coke's newly released executive compensation package.
- Winters is some one to watch as he successfully pressured the board to amend the pay package.
- He even shamed Warren Buffett into abstaining from voting for the plan.
- Is he serious when he states the dividend could be at risk?
Dividend Zombies - Coca-Cola YDP Analysis And Fair Value Appraisal (Part 5)
- Dividend Zombies are income equities that have survived more than 100+ years with unbroken and undiminished dividend distributions. These are the 8 income machines that can’t be killed.
- Coca-Cola began its Zombie run in 1893, now in its 123rd year.
- Coke's moats are broad and deep, with a global footprint, most recognized logo in the world, 500+ brands and financial might to beat all competitors or simply swallow them.
- Current fair value price is $43.57, just 2% above the November 12th market.
- Revenue continues to struggle due to lower demand for soda.
- Higher marketing and new products has been driving demand in the International market.
- Valuation numbers show that earnings are expected to grow in the future.
Coca-Cola's Monster Deal Gives Me Long-Term Optimism
- Coca-Cola has been experiencing struggles in its core carbonated beverages business, particularly in North America.
- Coca-Cola's recent investment in Monster is a smart way for the company to scale external product innovation that can leverage its massive distribution system.
- I own Coca-Cola in my dividend portfolio and remain optimistic on its future prospects, current issues notwithstanding.
Coca-Cola Has Growth, Margin And Capital Deployment Problems
- Growth in unit case and concentrate volume has slowed from an average of 4.5% to 1.8% over the past two years. This is the measure of consumer demand.
- Demand creation expense, when considered as a percentage of revenue, has decreased over the past ten years, while net income as a percentage of revenue has also declined.
- Corrective action is underway: however, this appears inadequate and will take time. Success is not assured.
- The company owns or licenses over 500 brands, and has not undertaken a strategy of culling the brands and focusing on winners.
- Buyback activity is excessive at current price levels and takes capital away from more productive uses.
- Coca-Cola’s third quarter results came in as a disappointment for its investors as revenues remained flat, volumes increased by only 1% and as profits tumbled by 14%.
- Share prices slipped by 6% in the market following the announcement of these results.
- The management of the company intends on making $3 billion in cost savings by 2019 to improve bottom lines in the future.
- The company has carried out a number of strategic partnerships and acquisitions over this year to strengthen its product portfolio.
- The company has adjusted its future outlook downwards and stated that 2015 will be a challenging year as well.
Coca-Cola Or PepsiCo: Which Beverage Titan Posted Stronger Q3 Results?
- Coca-Cola released Q3 earnings on October 21.
- PepsiCo released Q3 earnings on October 9.
- Which company reported the better quarter?
- The iconic name brand associated with Coca-Cola is consistently losing market share in recent years.
- Much of the loss in market share is due to changes in consumer tastes as Americans try to choose healthier options.
- Coca-Cola could grow its market share by acquiring a company like Zevia, which makes sugar-free all-natural Soda.
Mon, Dec. 15, 4:39 PM
- Ahead of its modeling CC, Coca-Cola (NYSE:KO) guides for 2014 comparable currency-neutral EPS growth of 4%-5%, and a 7% currency headwind. Consensus is for EPS (in actual dollars) to fall 1.4% Y/Y to $2.05.
- Q4 currency-neutral EPS growth is expected to be slightly positive, with forex providing a 9% headwind. Consensus is for EPS to rise by a penny Y/Y to $0.45.
- Coke doesn't see currency-neutral 2015 EPS growth being "significantly different" from 2014; forex is expected to provide a 5%-6% headwind. Longer-term, the company sees itself once more hitting its stated growth targets. The consensus 2015 EPS forecast is for 2% growth (to $2.09).
- The beverage giant plans to buy back $2B-$3B worth of shares next year. Its tax rate is expected to be 22.5%.
- Shares are down fractionally AH. CC webcast, slides (.pdf).
Mon, Dec. 15, 12:56 PM
- Wintergreen Advisers is out with a new report on Coca-Cola (KO) in which it calls for "forceful action" to energize the company and free up shares for a rally. Snippets below.
- On compensation: "Pay for Coke’s top management has been excessive in light of the company’s performance."
- On dividends: "We believe excessive pay practices combined with slowing profit growth could threaten Coke’s 50-year record of dividend increases."
- On management: "The strategic investments made by CEO Muhtar Kent have destroyed shareholder value. His blunders on failed acquisitions alone have cost shareholders $16.3 billion."
- Wintergreen thinks Coca-Cola's shares have been handcuffed by the above issues. If changes are implemented, the investment firm sees a clear path for the company's share price to rise to a range of $74 to $82.
Thu, Dec. 11, 11:12 AM
- Coca-Cola (KO +0.8%) adds Marc Bolland and David Weinberg to its board of directors.
- Bolland is the CEO of retailer Marks & Spencer, while Weinberg is CEO at Judd Enterprises, a private financial services firm.
- Both execs will join the board on February 15, 2015.
Mon, Dec. 8, 2:20 PM
- Boulder Brands (NASDAQ:BDBD) says it's looking to invest in brands in the $1M to $10M range.
- EVP Duane Primozich sees a dynamic shift in beverage as new brands scale rapidly to fill niche categories with unexpectedly strong demand.
- "Crazy plays," says Primozich.
- Looking for the next break-through beverage fad? Primozoch mentions drinkable vinegar as a category that could grow.
- Large-cap companies (COT, DPS, KO, PEP) seem to have their head in the sand over innovation, bemoans Primozich.
- The comments were made during the company's presentation at the Beverage Entrepreneur & Innovation Conference (live stream).
Mon, Dec. 1, 11:14 AM
Thu, Nov. 27, 4:52 AM
- SABMiller (OTCPK:SBMRY), Coca-Cola (NYSE:KO) and Gutsche Family Investments are merging their soft drinks bottling operations in South and East Africa to create the continent’s largest bottling operation with sales of $2.9B.
- "The opportunity is significant, with favorable demographics and economic development pointing to excellent growth prospects," says SABMiller CEO Alan Clark.
- Headquartered in South Africa, the new company will be 57% owned by the SABMiller, 31.7% by GFI and 11.3% owned by Coca-Cola.
Thu, Nov. 20, 2:26 PM
- Keurig Green Mountain (GMCR -8.2%) declines after the company sets its guidance lower and announces the resignation of CFO Frances Rathke.
- During the firm's conference call, execs noted that Increased competition in the single-serve market continues to impact margins in the coffee sector.
- What to watch: Analysts say the wildcard with Keurig is if share price slides further would Coca-Cola (KO +0.1%) be tempted to buy out the whole company. Opinion is divided.
- GMCR earnings call transcript
Thu, Nov. 20, 11:28 AM
- Coca-Cola (KO +0.2%) could actually be in play for a leveraged buyout, notes Nomura Securities.
- The analysis follows a development in Brazil where 3G is raising considerable capital for an U.S. food and beverage takeover.
- Another interesting twist is offered up by Bernstein. The investment firm thinks Bershire Hathaway could set up a deal with Coca-Cola similar to its tax-saving move to swap P&G shares for Duracell. In this case, Berkshire would land Coca-Cola's North American bottling operations - valued at $12.8B vs. Berkshire's $17.8B in Coke stock.
Wed, Nov. 19, 8:23 AM| Comment!
Mon, Nov. 17, 3:28 PM| 2 Comments
Thu, Nov. 13, 12:12 PM
- Wintergreen Advisers warns shareholders of Coca-Cola (KO +0.4%) that the company's new plan for executive compensation puts the dividend at risk.
- The activist investor chides the company for gaming the system by shifting management pay to cash from stock in an effort to quiet critics.
- Wintergreen is a well-known gadfly of Coca-Cola and holds about $100M worth of Coke stock.
Wed, Nov. 5, 7:56 AM| 7 Comments
Thu, Oct. 23, 1:34 PM
Tue, Oct. 21, 9:14 AM
Tue, Oct. 21, 9:01 AM
- Shares of Coca-Cola (NYSE:KO) decline in early trading after the company shows a year-over-year slide in profit during Q3.
- Volume growth in key regions was underwhelming for the soda seller.
- A warning from the company on missing a long-term profit growth forecast this year and next is also factoring in.
- KO -4.8% premarket to $41.25.
Tue, Oct. 21, 7:53 AM
KO vs. ETF Alternatives
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