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Time to buy Coke? COKE
Old 07-16-2008, 09:24 AM   #1
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Time to buy Coke? COKE

It looks really beaten down just now.
Is it time to start poking around in the dumpster?
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Old 07-16-2008, 09:33 AM   #2
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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.
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Old 07-16-2008, 09:36 AM   #3
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never saw the point of using illegal drugs since most prescription drugs are pretty much the same thing and are almost free
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I was looking at COKE but it's not what I thought.
Old 07-16-2008, 09:40 AM   #4
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I was looking at COKE but it's not what I thought.

COKE
COCA COLA BOTTLING CL CM


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

Interesting distinction.
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Old 07-16-2008, 09:42 AM   #5
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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.
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If I don't understand it I don't invest.
Old 07-16-2008, 09:46 AM   #6
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If I don't understand it I don't invest.

Quote:
Originally Posted by Hal3 View Post
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.
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Old 07-16-2008, 10:02 AM   #7
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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
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Old 07-17-2008, 10:27 PM   #8
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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?
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Old 07-18-2008, 09:28 AM   #9
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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.
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