Friday, January 17, 2014

Coca Cola, KO not moving since split

I was poking around on Twitter earlier today and got onto a debate about Coca Cola (KO).  Warrior Investments (@warriorinvest) tweeted that KO is a strong sell and cited that coke is on the wrong side of the soda consumption trend in North America.  While I do agree that North America is trending away from soda, there are other factors that one must consider when deciding on investing in KO.  On the downside you have the fact that KO hasn't made much progress in the stock price since the 2 for 1 split, and the point that Warrior Investments made about the N.A. soda trend.  But on the positive KO is in something like 179 countries, and you have to consider that they realize the trending in North America and are most likely working on new products that will be better accepted, possibly healthier alternatives to the sugary drink to satisfy the demands of the market.  I am not willing to say you should go out and buy up a bunch of KO stock, but I certainly am not against buying it either.  KO is a solid company with good management, I am not selling my holdings in KO.  I would recommend either holding what you have or if you're thinking of buying, go ahead, I don't see it dropping too far anytime soon and I think it is a great long term investment if you're looking to balance your portfolio.

1 comment:

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