This stock seems to be living off the grace of its history and has not done much in years. Yes, it is wonderful to have someone like Buffett be your advocate, but old Warren should demand better performance out of this company. The dividend is not fantastic and this market space is starting to develop a reputation much like the fast food industry. So please tell me what I am missing by not purchasing KO.
You and David Winters both agree that Buffet hasn't done enough to prod management . This Monster deal will be a tipping point for Kent. He's leveraging KO's distribution strength to sell a domestic product worldwide. If successful, we will see more of the same , hopefully with KO entering the snack food business. The deal is a smart one , because KO only has a 17% stake in Monster , so if the drink doesn't catch on abroad , all isn't lost , including the 17% stake . But if it is successful, KO stands to increase revenue and realize an appreciation in share price of Monster . This deal will also give Kent credibility as the CEO after taking flak for giving himself and management the largest performance based compensation package in KO history. What makes KO attractive is the Monster potential when compared to the worldwide phenomenon of Red Bull which sells 3 or 4 times the amount of energy drinks than Monster worldwide . Also the potential for similar deals for other domestic brands . And that is why KO is a good investment . All these endeavors contain risk . So if you buy into this new strategy , you have the down side of KO's regular beverage business, and you have the potential upside of the risky deal making business. Considering KO's ability to distribute worldwide it looks like a nobrainer on the surface .
For those of you who take exception to my post. If you re-read my post, I was asking a question. Was it the question you did not like or do you simply demand cheerleaders on this board. Try to articulate an opposing point of view, it may make you think for change. Lol:
i think if that's how you feel, invest elsewhere... I invest in Coca Cola because the dividend is paid on time and grows consistently. The company is known globally and is the largest beverage company ever. It also has the potential to grow and expand. That's just me...
Old entrenched management delivers old entrenched negative growth results .....but the mgmt
gets great pay raises for "hanging out" here.
What's not to like if you live in Atlanta .....?
With its brand recognition and its global distribution, Coke could be the biggest drink/food brand
in the entire world....but instead we buy bottlers in North America .......and litigation riddled power
drink brands that are showing their own negative revenue growth rates.
Kent, his Board of Directors and Buffett just don't give a damn about the rest of the shareholders.