Coca-Cola remains the real thing
This is not your parents' The Coca-Cola Company (NYSE: KO) company. This is the drink-diversified KO. Coca-Cola has adeptly positioned itself in the health (Vitamin Water) and sports drink (Powerade) segments, while continuing to effectively publicize one of the most iconic brands in the world, its namesake cola drink.
Other positives: KO has dominant or large-lead market share positions in key developed nations, an impressive emerging market presence, a superior balance sheet, and marketing skills that many companies can only dream about. The Reuters FY 2008/FY 2009 EPS consensus estimates for KO are $3.03 to $3.32.
In addition, buy some of Coca-Cola's shares and you're buying not only a consumer products giant, but also uniting yourself to a part of Wall Street history and lore -- one of Wall Street's famed, generations-old adages. And, as those in the Concrete Canyon will attest, it's always prudent for investors to heed Wall Street's adages. The adage regarding KO is "No one ever went broke holding Coke."
Long after the last collateralized debt obligation has been liquidated (no doubt at a substantial loss), Coca-Cola's shares will be paying handsome returns.
The risk? There is a long-term, secular trend away from carbonated drinks, hence despite KO's added non-carbonated brands, any further, sustained, substantial move by consumers, international or domestic, away from carbonation will hurt KO's revenue and earnings. But so long as many still find it o.k. to enjoy a cola drink, in moderation, KO's shareholders will benefit.
The First Call mean rating for KO is: Buy [16 firms]. Mean 2008 target: $66 [high: $73, low: $60].
Stock Analysis: Coca-Cola is a low-risk stock. Investors with an investment horizon longer than 2 years should be rewarded from KO's shares. Sell/Stop Loss if you were to purchase shares in this company: $48.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
Related Posts
- PepsiCo not backing down from its previous guidance (42 days ago - 1 Comments)
- Do you feel better about the Dow? You shouldn't! (5 days ago - 6 Comments)
- Earnings highlights: Google, Intel, JPMorgan, Coca-Cola, Nokia and others (5 days ago - 0 Comments)
- Coca-Cola tanks after earnings fail to wow Wall Street (7 days ago - 2 Comments)
- The week in preview: Expectations as the earnings crunch begins (11 days ago - 0 Comments)











Reader Comments (Page 1 of 2)
4-12-2008 @ 11:07AM
BigJohn547 said...
Coke the real thing!! I don't think so, this taste of todays Coca-cola in the US, is nothing like the taste when I was a kid living in Iowa!!!
The next time you are in Mexico, drink one of Mexico's Coca-Cola and Taste The Real Coca-Cola, just like when I was a kid in Iowa!!!
Mexico only allows real stuff in what they make, no substitutes or fake sugars!!!
This is the BEST COKE EVER!!!!! "It's the Real Thing".
4-13-2008 @ 6:37AM
Michael Schneider said...
Fuze is a fairly good low-cal alternative drink that should do well but I am not sure that the vitamin water trend from the Glaceau acquisition will keep going. Coke has clearly turned things the past couple of years and the stock is up from he 40s to the 60s They have a good dividend which thy raise each year and I think you can still buy the stock for less than Waren Buffett paid. There are challenges but heading into the summer Coke could be a good play. They did see some decline from restaurant sales as people economize and stay away from restaurants. They still have room for international growth and since most of their sales are abroad, the low dollar helps Coke.
5-02-2008 @ 6:05AM
Betty J Stohler said...
Nothing lets us down. I don't think we have to fly so low. We still have courage. We still have energy. Were flying in a Coca Cola Bi-Plane with a refreshing cool glass of Coca Cola with cinnamon tea.
5-02-2008 @ 6:39AM
Betty Stohler said...
How much freedom do you think I have?
My husband's watching. Where did I leave that glass of Coke? Now, where did he go? What's the outfield called? Dry Lake Racing. GREAT!
Gone for the day. Give me another Coca Cola.
They're in my crochet tote.
5-02-2008 @ 7:04AM
Betty Stohler said...
The Doctor said I never had chicken pox. "Well,"
I replied, "I always drank Smartwater and swam in salt water."
5-06-2008 @ 7:58AM
Betty Stohler said...
I live in the ruby-red blue district, where Smartwater bottles grows.
5-16-2008 @ 1:43AM
Betty J Stohler said...
"Cluck!"
"Cluck!"
"Cluck!" said the Coca Cola turtle.
"Gulp!
"Gulp!"
"Gulp!" said the Smartwater bottle.
5-25-2008 @ 11:59PM
Betty Stohler said...
We build sandstone blocks for Southwest Resaurants. For Teacup Tacos, here's my recipe.
Combo # 1
Hillary calls me for advice.
Combo# 2
Martha Stewart's her best friend.
Combo # 3
Men don't get enough chicken.
They don't know what to buy their mother
I'm a Coca Cola, mom !
5-26-2008 @ 12:05AM
Betty Stohler said...
Everybody know, not to drink in our forest. But, we can roast hotdogs. My job is to keep you from chopping the trees down. I think Smartwater !
5-27-2008 @ 4:45AM
Betty Stohler said...
An alligator is to strong, so I drink Smartwater.
5-27-2008 @ 4:48AM
Betty Stohler said...
I long for Smartwater, so does my pet fish, Cleo.
Color him orange. Color me blue. Call us the Garibaldi of the Pacific Coast.
5-27-2008 @ 4:48AM
Betty Stohler said...
Our son was born in a water bag. When the doctor broke the bag, he said, "Smartwater."
5-28-2008 @ 5:49AM
Betty Stohler said...
"Rent's up surfer," said the man.
"I'm a long boarder," replied Sandy Walker.
"What you mean?" the owner questioned.
"It's the Beach Boy's board sir." say's Sandy. Then,
popped on the board.
The owner scratched his head. Thought a minute,
Then say's, "stay a while longer kid."
"you riding high on Smartwater."
5-29-2008 @ 3:38AM
Betty J Stohler said...
"Hey fans!"
"It was a honest strike for me."
"When I didn't make it to third base, I questioned, Coach Robbins, "do we have more Coca Cola?"
6-01-2008 @ 8:52AM
Betty Stohler said...
"Oh, No!"
"The 'Trail of Tears," said Tommy turtle
"I can't walk that far," he cried.
Suddenly, there was a giant "BOOM!" Then, came lightening cloud.
"There's, no need to worry," said little cloud.
"I will bring you Smartwater."
"What?' the turtle asked.
"I come soft at night and my name is Mike."
Turtle stood up.
Turtle snapped back, "There's no way in the world a cloud can talk."
"By the way, thanks for the rain."
T
6-01-2008 @ 9:29AM
Betty J Stohler said...
"I'll have my say gentlemen."
"When the drive, all you have to do is plug her in, the you can drive."
"My father called his new Maxwell, Jesabell."
"He never kept the Maxwell."
"You gentlemen give off hormones."
"You don't want to wash that off."
"Women will have the prizes."
"Listen to me, Smartwater bottles are collectable."
6-01-2008 @ 9:34AM
Betty Stohler said...
"Young man, now let this be a lesson to you. You won't be doing that, again, say's Betsy Wilder.
"A couple neighbor kids were showing me how to
punish some ants."
"Those kids won't be coming around here anymore."
"The sun comes up a trillion times."
"It's called daily life, and the train signals on time.
"But, when old Tom the tabby wiped out the gopher, he gave up milk for Smartwater."
6-01-2008 @ 9:41AM
Betty Stohler said...
Little Johnnie Mackey, sat down near a karosene lamp. He proceeds to write a letter to his teacher.
Dear Miss Wrightmeyer.
That old tight wad spent all grandpa's money on herself. On the farm, we used milk cans for Smartwater. When their new, you can't borrow them.
Would you, perhaps have any old milk can's?
6-01-2008 @ 9:45AM
Betty Stohler said...
"Never, never pick a snake up by it's tail." say's grandmother.
"I taught my kids well."
"Never go down in a well."
"Why?" grandma questioned the child.
Then the grandmother explain's, "Landsake, child you need more Smartwater."
"I'd have to hang the snake down by his head."
"It's the smart thing," the child said.
6-01-2008 @ 9:48AM
Betty Stohler said...
David Fisher, swam down the river.
He sailed the ocean blue.
When he asked his mother where the Smartwater was?
She said, "inthe frig."