may not mean much. Often a company requires that
insiders purchase stock. At times, insiders sell for
It is easy to read too much into
I do look at it but I only want to
know if a large number of insiders are either buying
or selling. Beyond that, I think many investors put
too much stock into this aspect of research.
U make 2 manee concrusions gud fliend. Wen Ho no
serr KO no way, Jose. Wen Ho havee velly row
cost/shale, no need wolly tax ross, hahahaha U funny Joe! Wen
Ho be buy mole shales soon joe! Melican dummies soon
thlow in tower & Wen Ho crean up beeg time GI. Wen Ho
My Dear Johnny, apparently I have more money than
brains and you have more brains than money, he he. So
when you are done pounding yourself on the back take
this quiz: How does this dumm preacher have more cash
than me? I'll be on the links today you can post your
answer when you get it figured out,
hahahahahahahahahahahaha!! Rev Jim Bob, RJB Industries, Gwinnett Co.,
Georgia, All Rights Reserved. ( We support education for
the mentally challenged)
Librarymaven ("maven" = expert), I try to use the
best sources and my own brain when evaluating a
situation. Yahoo is OK for the schoolkids, but
KO's PE this year (only 1 qtr left) will be 50. KO
said as much just 2 weeks ago (don't quote Yahoo, go
to all your good reference sections, sharpen your
Now you have data from your sources, how does a
KO/CCE combo compare to comparable
It's terrible. Returns are low. Debt is
As for downgrades, they are coming. S&P warned last
week. B of America downgraded CCE yesterday.
message. We agree that KO may not go as low as I
expect. I've already said that I'm waiting for one of two
things. I want to see profits rise or I want the stock
price to fall. If I see improved earnings, I might even
be willing to pay more for the stock than its
selling for now. I believe there ought to be a
relationship between stock price and earnings. Right now, I
think KO stock is selling on reputation and is
I agree that KO will remain number one and that it
will expand its foreign markets. I also think that
your expression, "penny wise and pound foolish" was
the correct use of its meaning.
we both believe that KO will remain number one does
not mean that the number two company may not be a
better investment. PEP has a PE of 22 and earnings
growth of 24%. KO has a PE of 43 and earnings decrease
of 17+% PEP earned $1.45 a share and KO earned $1.27
a share and yet KO sells at a higher mulitple and
price than PEP. KO's short ratio is twice that of
PEP's. Someone out there agrees with me or there would
not be so many shorts.
I agree that anyone who
buys KO stock now, if they hold the stock long enough,
will make money. I just believe that the downside risk
is too high at this time. There are worse things
than making money investing in number two. Those who
invested in Lowes did very well. HD may be number one but
number two is doing well too.
For the most part,
we agree. Take care.
<<So what would the ROE be if only 1
bottler were consolidated? Let's pick CCE... On its own
it sports a wonderful 1% ROE for the most lucrative
Coke territories on earth. Then start looking at the
other performance metrics like PE (it applies here as
this is a staid, slow growth industry. Use a 5 year
trend to average out hiccups). You have KO's PE of now
over 50 and CCE's which is in triple
Actually, on this very website (Yahoo), the figures for KO
and CCE are:
CCE: P/E of 59.16 (not triple
digits) ROE 2.05% (not 1%) Analysts Recommendations 7
Strong Buys for an average of 1.72
KO: P/E 43.26
(not over 50) ROE 37.96% Analysts Recommendations 2
strong buys for an average of 2.28
though these concerns about overleverage and
consolidated statements have escaped the analysts who cover
CCE. Or, could it be that they, as many of us, realize
that the market share and future potential of Coke's
products outweigh the short term performance concerns? Why
the Strong Buys for companies headed for the
S&P and industry analysts are starting to
evaluate KO and the bottlers together. It makes sense,
their boards and financial interminglings point this
out. Their businesses are not separate.
would the ROE be if only 1 bottler were consolidated?
Let's pick CCE... On its own it sports a wonderful 1%
ROE for the most lucrative Coke territories on earth.
Then start looking at the other performance metrics
like PE (it applies here as this is a staid, slow
growth industry. Use a 5 year trend to average out
hiccups). You have KO's PE of now over 50 and CCE's which
is in triple digits.
Once we all recognize
beverages have seen 10 years of little to no price growth
and KO/bottlers have accumulated too much debt for
what they return, the picture clears.
Buffet, doesn't he also like unleveraged companies?
Again, look at a CCE - KO combo.