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Monday, April 20, 2009

Are u buying ( KO ) Coca-Cola ( Coke ) Company before Earnings Report ??

* KO 44.23 a share 4/21 Target Price 52.00
The Coca-Cola Company is a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world. Finished beverage products bearing its trademarks are sold in more than 200 countries. The Company markets nonalcoholic sparkling brands, which include Diet Coke, Fanta and Sprite. The Company manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as finished beverages, which it sells primarily to distributors. The Company owns or licenses approximately 500 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks.
soft drinks will probably do well over a recession, as they are relatively low-priced quick refreshments.Coke is a company I can understand. They make a product that people (myself included) want to purchase. They earn money and they pay a dividend. We could get into details about free cash flow and payout ratios...yeah :) I want to jump on down to MY bottom line: "Is it a company that is strong, understandable, and pays a dividend?" For me, KO fulfills the requirements.Strong, increasing dividend, unmatchable brand name, continual acquisitions of brands like VitaminWater. KO is a buy. One of the few companies that has the ability and market penetration to globally distribute and sell cheap, customizable WATER products that every single person in the world wants needs every day, multiple times a day.Coke is a good player in the International market when the dollar is low and when sugar prices are reasonable both of which are true at this time. It also has a decent dividend and plenty of cash on hand to pay it and get through the recession. It's been beaten down a bit so it's time to pull the trigger. Long term play Strong brand, cash, a business model anyone can understand. So buy before the earnings report on Tuesday !
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