% | $
Quotes you view appear here for quick access.

The Coca-Cola Company Message Board

  • onethousandoceans onethousandoceans Sep 23, 1999 12:59 PM Flag

    cataclysmic event necessary

    For KO to reach the 20s would take a cataclysmic
    event effecting all stocks across all sectors and all the face of which, no investments would be good
    investments, KO or otherwise. I would look for high 40s as the

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Benkea, thanks for the info. I just might take a closer look. Heck, you only live once.

    • If you actually look at CMGI, don't be misled by
      the reported 95 mil shares outstanding. They issued
      21 mil common and 1.8 mil in convertibles to Compaq
      for Alta-Vista. These aren't reflected until all the
      financial sources update this quarters' numbers.

    • My other net VC is SFE (who owns 15% of ICGE)
      which has been around since its' current CEO founded it
      in 1953. These guys ALWAYS spin off IPOs to
      shareholders while CMGI only does so sometimes. What a ride
      ICGE was ($12) :)) USIT wasn't too bad either ($10).
      SFE is EXTREMELY shareholder friendly and has
      management with integrity near rivaling Buffett's.

    • Thanks. Yes, it was a blowout quarter. They put
      $1/2 billion to the bottom line this quarter. They are
      the only pure-internet company (besides SFE) to make
      money off the net AFTER all the "one-time" "every-time"
      charges. These guys sell the dot.coms.

      In addition
      to the $500 mil in cash they have, they have over $3
      BIL in marketable securities (YHOO, AMZN, ENGA, SILK,
      LCOS, HLYW, etc) up from a mere $195 MIL last year. Of
      course this EXCLUDES the value of the dozens and dozens
      and dozens of privately held subs (both minority and
      majority interests).

      Alta-Vista (a top-ten
      web-site) which is offering free net service through
      another of CMGI's subs, Navi-Net (who also just announced
      they are doing Prodigy's access) is available in 24
      lanquages and is growing faster than ANY other portal. It
      will file for IPO next month for IPO in Q1

      Another CMGI wholly owned sub, Navi-Site (not to be
      confused with Navi-Net) has already filed and should go
      next month.

      CMGI owners include:
      CPQ (18%),
      INTC (5%), MSFT (5%), GTW, DELL, Sumitomo Bank, and

      The conference call really is worth a listen:
      800-475-6701 (#470733).

    • Benkea, if my memory serves me correctly, you own
      CMGI. Congratulations. They had a real blow out qrt. I
      was so impressed I flirted with the idea of buying
      some. But as a value investor at heart, I am having
      trouble coming up with enough reasons to own an internet
      pure play. Oh Well.



    • Hang in there dude, I've got more where those came from. Sorry about the socialist moniker, Karl. TT

    • You bring up a valid point so I will try to
      respond. But, once again, Europe is not my strong suit. I
      have not been there in a few years and when I went, I
      certainly was not checking up on Coke.

      It is true
      that Coke cannot force the Mom and Pops or the chains
      to charge fair prices for Coke. What Coke needs to
      do in Europe is what they have done in the U.S. They
      need to build up demand so much so, that grocery
      stores use Coke as a loss leader to attract customers.
      Out here in Silicon Valley, Safeway and Lucky do it
      all the time. They regularly offer discounts on Coke
      to attract people to their stores. Normally a 12
      pack sells for $4. But about once a month Safeway and
      Lucky have a special. Safeway usually has their special
      on the 1st week and Lucky on the 2nd week. So that
      on the 1st of the month Safeway offers 2 12packs for
      $7 sale, next week Lucky offers a 12pack for $3.80
      or so.

      The point here is that the demand for
      Coke in the US is high enough that it has resulted in
      a lot of price competition by grocery stores. "Coke
      on Sale" has become an effective carrot to lure in
      the shopper.

      Now the demand in Europe still
      has not grown enough for Coke to be used as a lure
      for customers. This does not offer an incentive for
      the grocery store to sell Coke cheaply. If putting
      Coke on sale does not result in increased foot traffic
      than why put Coke on sale. Example, let's say there is
      a store with 2 customers. I am customer 1 and I
      don't like brand X soda. Customer 2 loves brand X and
      always buys 5 cans for 10 cents each (or 50 cents
      worth). If the store marks brand X down to a penny, I
      still won't buy it cuz I don't like the taste. Customer
      2 is in heaven and buys 10 times what he normally
      buys. He buys 50 cans for 50 cents as opposed to 5 cans
      for 50 cents. Well, the store has not increased foot
      traffic, since I am a regular and shop their regardless of
      the price for brand X. And it has not increased
      profits. It is still selling 50 cents worth of soda, but
      now they gave away 50 cans for 50 cents as opposed to
      5 cans for 50 cents. So, the store actually is
      reducing profit margins. What are the chances that he will
      do that again anytime soon?

      But if brand X
      begins to widen its popularity it will have more loyal
      custormers than just that one customer. If those new loyal
      customers hear about the amazing 1 cent soda sale at the
      grocery store, they will flock to the store increasing
      foot traffic and hopefully store sales of other non
      sode related items. The store next door gets a mean
      case of the envys and also has a soda sale, and the
      story goes from there.

      That, IMHO, is where KO
      is at now. It has some loyal drinkers in Europe, but
      not enough to be an incentive for store owners to
      offer Coke on Sale. So, like brand X, KO is now
      widening its popularity. It is getting more people to try
      Coke or to get into the habit of drinking KO. It is
      doing it through the incentives with I mentioned in the
      other post. Once KO has a wider more loyal custormer
      base, grocery stores will have no choice but to offer
      KO cheaper, because if they don't the customers will
      go to someone that will.

      KO's job is to find
      and retain loyal customers. The market forces of
      supply and demand (with a healthy dose of competition),
      will do the rest. And since KO has proven over and
      over that it knows how to get and retain customers, I
      am not too concerned about the rest.


    • I had to laugh, good substitute for

      The socialist crack hurt though, it's bad enough
      having to live with them...but being tarnished as one.
      It's just unforgivable

      Back to the vegi' patch,
      manure for brains

    • ooooooh, you focus on stiff things, huh? I shoulda known a limp wristed, mealy mouthed, whiny, socialist would want a piece of ole Ted. Are you still Rupert Murdochs' stable boy? TT

    • No trace of emotion or anger here, just humour at
      how easy it is to wind you up. What a soft touch you

      I repeat:- 'afford' and 'pay too much for' are two
      different things (even an amoeba would concede that). Coca
      Cola is too expensive, sales are suffering and an
      accompanying price dive is/will continue to be the

      Buying up competition is no measure to
      balance a loose fiscal policy, it simply compounds the
      problem. The clock is ticking, watch out below

    • View More Messages
42.44-0.10(-0.24%)Oct 26 4:00 PMEDT