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Strategies & Market Trends : Value Investing
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To: MCsweet who wrote (52469)10/6/2013 10:58:43 AM
From: Spekulatius  Read Replies (1) of 78519
 
Re KO - I think the concerns regarding soda consumption are somewhat valid. The Spekulatius family does not consume much soda at all. The soda consumption in the US had been slowly shrinking for years, but KO has their fingers in a lot of different beverage categories, so a lot of it is just substitution.

However, the US is only 20% of KO's business and the stock trades roughly at a market multiple. For a business with KO's inherent strength in terms of market position and predicability, a great balance sheet and strong management, that seems just too low. I do acknowledge that the emerging market slowdown as well as weaker Forex exchange rates are going to hit KO and the next earnings may be weak, but I am willing to look past past near term issues with a company like KO.

In terms if their health focus, I like Nestle (NSRGY) more, but the stock is not a relative bargain right now. I still own some and think it is a hold.
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