I would characterize my sentiment as neutral - with better places for your money. I don't believe that the KO risk/reward is beneficial for investors yet. I'd favor the Duck's gold play over KO.
A very nice report Canoe. Especially nice because it's your 1st positive sentiment in a very long time. I hope Mycroft reads it and comes back to the board. I'm hoping it doesn't take "years" for KO to recapture darling status. Those 5 splits spoiled me rotten...but the past 12 years have humbled me to the point of almost selling. I didn't lose much but didn't make much either...and by the way...playing the timing game suks big time.
For you to not understand KO's soda system financial structure is a warning sign. You can't understand KO's future without understanding its off balance sheet entities (anchor bottlers). Don't be chiding me just because I wanted to (CCE).
CCE results are out. Posted good. Inventory not bad. etc.
My main qualifier for the below: I'm not digging into the KO and anchor bottler financials like I once did. I didn't have to for the past 4, 5 years. The writing was on the wall - KO had to deleverage the soda system (KO + its anchor bottler off balance sheet entities). In doing so, the soda system operational profit and performance would suffer.
So now we have an end game play - KO buys back CCE NA. Taking on these assets will greatly impinge on KO's financial ratios. Of course, it now has bottling assets it can off load on other unsuspecting buyers. Know any that are not aware of the fiascos of underperforming anchor bottlers? San Miguel anyone?
KO's system is now getting delevered. That is a positive with an offsetting negative in the aforementioned financial ratio degradation. So there can be PE compression. After all, KO is a commodity vendor.
Then you have society's move away from fizzy water, even if it is so called "diet".
The dividend in the past 12 years has plumped up. That is a positive. Maybe KO should try to achieve a 5% dividend? After all, its more like a utility than a growth company.
There is also the currency translation of profits (benefits of translation, not transaction business currency fluctuation) to consider. If you want to play a weak USD, pick an exporting manufacturer (transactional).
For the next couple of years, I stick basically to my prior stated expectations. KO between $40 and $60. If the market really gets goosed, or the USD really dives, maybe KO can rise above. Or alternatively, below.
Conditions have changed and I will not prognosticate to 12 years.
"I'll wait to see what CCE reports before responding.">>>Canoe
Alas...your own words make for an inetresting inegma. Clearly you will base an opinion on the results of the CCE earnings report. C'mon Canoe.....who's playing who???? I'm not a scientist or an analyst...well not w/in your defined parameters of meaning. It's been 12 years and you were right about all of that..I give you props for intelligence, insight and prophecy. This is not about the qtr...it's about the future. We're all in this pickle together, we're all looking for something to hold on to...even the Duck clings to the only thing he believes to be real...right now. I think you're a lot smarter than you care to take credit for sir. 12 years ago yu told us all about the "next" 12 years. So please, give us your best Nostrodomus prophecy for Coca Cola and the next 12....se vu ple?
I own a copy of "When Money Dies" for > decade. Bought it for $40 from an ebay chap in England when the USD$ was king. Last year, saw a copy go for $660. I'm sad to see it was reissued. I originally valued the book for its history and lesson, but later saw it as a good, though accidental, investment.
However Duck, you're still just yelling "fire" with no substance. Present who is lending and leasing gold and who is double counting the reserves - or please stop the nonsense of proclaiming such.
QWAK,This is for every one BUT canucanoe! LOL :)
People who THINK they understand MONEY and work with huge amounts of CURRENCY are reading THIS BOOK and EDUCATING them selves to the GREATER reality that -- THEY don't REALY know about REAL MONEY -- only CURRENCY!
Duck, stop making this stuff up. Your links are rubbish, all have missing holes to be truthful. Now go look at my post and explain:
1. Who has lent gold? Who has leased gold? and who is double counting gold assets?
2. Stop the rubbish that a valuable commodity is the only legal money in the US. As we see by the minute, legal money in the US is not gold.