Time to buy Coke? COK

[Hal3]

It looks really beaten down just now.
Is it time to start poking around in the dumpster?

[CitricAcid]

Do you mean KO? It has been beaten down and the yield on it has reached 3% so it is reasonably attractive for the yield alone. 3 years ago, their EPS was $2, now it is $2.59, which averages to about a 9% YoY Earnings growth, which for a dividend-yielding stock make the 19.5 P/E average. In other words, I don't expect it to move much, or ever command a much higher P/E as the growth isn't incredible in this company, but it does have a good yield and has proven to consistently post profits, as opposed to many more volatile companies.

[al_bundy]

never saw the point of using illegal drugs since most prescription drugs are pretty much the same thing and are almost free

[Hal3]

COKE
COCA COLA BOTTLING CL CM


It looks like I was looking at just the bottling part of the business.

Interesting distinction.

[CitricAcid]

Yea, all KO actually does, if I understand it correctly is make the different syrups and then send it off the the various bottling companies that distribute, bottle, carbonate, etc. etc., but don't exactly know.

[Hal3]

Originally Posted by Hal3

COKE
COCA COLA BOTTLING CL CM


It looks like I was looking at just the bottling part of the business.

Interesting distinction.

If I don't understand it I don't invest.

Next topic, please.

[al_bundy]

read a book a few years back about how some companies transformed their business for greater profits. Coke and their transformation into just selling syrup was one of the examples.

the supermarket shelfspace is just for branding, all the profits are in the syrup

[Hal3]

We have a local beer called Shiner. They tried to compete with the low priced beers like Keystone and nearly went out of business.

They just raised the price and compared the beer to Heineken or Beck's only cheaper.

Same beer.

Sales up. Profits way up.

From their website:

Pricing

How is Shiner more expensive than others? It's not an import; it's a domestic beer.
Sounds like they're using a "two-tiered" pricing system; i.e., (1) domestic and (2) imported. Shiner beer actually falls into a third tier between the two, which is "specialty beer." Our beer costs more because of the high quality of ingredients and our brewing process: we handcraft each and every brew. By law, the retail account has 100% control over pricing.




Another interesting "transforming for profits" tale.

Beer syrup, anyone?

[CitricAcid]

Can't make beer syrup, wouldn't be any good. Well, some homebrewers DO use "beer syrup" which is just malt extract sometimes hopped which they use to make the beer. So, the beer syrup idea is kind of already in use.