AOL Money & Finance

The NCAA bans some Vitaminwater flavors, will it hurt Coke's earnings?

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I found a very interesting article while surfing one of the greatest sports blogs on the Web, Deadspin. According to The Brown Daily Herald, the NCAA has sent out an email to coaches and student-athletes informing them that some flavors of Vitaminwater are banned under the body's rules. According to an organization that conducts drug testing for some NCAA schools, six of the 15 flavors of Vitaminwater "contain common stimulates or other psychoactive chemicals that could be problematic for both the University and the student-athletes."

The article made me think back to some baseball players (not A-Roid or Baroid) who have blamed their positive tests on supplements and unknown ingredients (and for fairness, I think some football players used this "dog ate my homework" style defense as well). I just wonder if any of them sampled Vitaminwater ahead of their tests. However, back to the problem.


The questioned flavors of Vitaminwater are Power-C, Energy, B-relaxed, Rescue, Vital-T, and Balance -- but only Energy and Rescue contain the horrifying banned substance of caffeine (which is banned in concentration greater than 15 micrograms per millimeter). Actually, Energy also has guarana seed extract. According to the article, Power-C, B-relaxed, and Rescue contain taurine (which is also in Red Bull), L-theanine, and ECGC (from green tea extract). Balance has glucosamine and Vital-T has chemicals found in rooibos tea extract.

While athletes are supposed to know what is going into their bodies, I find it a tad tough to believe that these water products could really give that much of an edge. I could be wrong, and I am sure some will be quick to point out if I am, but I have tried Red Bull -- it was disgusting, and gave me no wings.

Ultimately, this could hit Coca-Cola (NYSE: KO) in the pocketbook, as they are the producer of the forbidden fruit. The beverage behemoth has spent the past couple of weeks bouncing between the $43.50 and $42 levels, but we could see this change, as the firm is set to report earnings on February 12. Better-than-expected results could send the stock higher, but it would need to take out resistance from its10-week and 20-week moving averages in the process. These trendlines have pushed the shares lower since early 2008, and don't look like they are ready to stop acting as resistance.

For the record, KO is expected to report earnings of roughly 62 cents per share, with a low estimate of 59 cents and a high estimate of 67 cents (according to AOL Finance). The company has topped earnings estimates consistently, so let's see if this week's results continue to be the real thing for KO.

Now, if you will excuse me, A-Roid and I are headed down to the corner store to pick up a few cases of Vitaminwater.

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Last updated: November 25, 2009: 01:56 AM

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