Archive for the ‘Beverages (Nonalcoholic)’ Category

Here are some Upgrades & Downgrades as of January 31st,2012

Upgrades

Downgrades

  • Monster Beverage (MNST) downgraded by CLSA from Buy to Outperform
  • Potash (POT) downgraded by Goldman from Buy to Neutral
  • Barclays (BCS) downgraded by WestLB from Buy to Add
  • Plum Creek Timber (PCL) downgraded by UBS from Neutral to Sell
  • Pep Boys (PBY) downgraded by Benchmark Co. from Buy to Hold

 

Out of all the above talked about stocks out there the ones that catch my eye the most are (NKE), (UA), (MNST), (POT).

Currently I do not own any Shares of the above talked about investments and have no plans to make a position within the next 3 trading days.

 

The Enmore stencil wall was 'sold' to the Coca...

Image via Wikipedia

The Coca-Cola Company(KO)Coca Cola, a Stock that has always been known for its Great Dividend, Great Yield.

Today Coca Cola (KO) traded at a Low of $63.34 – $65.43.  KO ended up closing at $65.23, and in the Eyes of many investors this is around or close to a Bargain Price, However I beg to differ. KO of which is a company I do not see going anywhere, anytime soon. However I think over the coming years ahead this may be one stock of which will a gradual long term decline. Not because its financials are out line or anything like that. However I feel as more, and more baby boomers get closer to retirement they will be selling off their shares of Coca Cola of which will bring it down even as it continues to outperform.
Over the Past year, Coca Cola has traded at a High of $71.77, and a low of $58.55

Since 1986 – 1996 Coca Cola has split 4 separate times a 3 to 1 split, and 3- 2 to 1 splits. During this time, the Baby Bombers were in there peak times of their life where they may of had the extra cash lining around to invest into KO.

If a Baby Boomer owned just 1 share, by the end of these 4 splits they would have 24 Shares.

Split 1 – 1 Share * 3 = 3 Shares

Split 2- 4 Shares *2= 6 Shares

Split 3 – 8 Shares*2= 12

Split 4 -16 Shares*2= 24

During 1946-1964 the so called 19 years of the Baby Boom, there was close to 76 Million Births in the USA.

Lets Estimate that 15 Million of these Baby Boomers invested in Cola during that time, each buying just 10 Shares of Coca Cola.

During Split 1- they would have 30 Shares Each * 15 Million = 450 Million Shares.

During the Next 3 Splits lets Say 9 Million of these decided to sell all their investments in KO 5 Million Continued to hold there shares of 30 and 1 Million of them Buying 30 More after the First Split.

During Split 2 – 5 Million * 30 Original Shares = 150 Million Shares with a 2 for 1 Split, Making their shares increase to 60 for a total of 300 Million Shares. The 1 Million of who invested into buying 30 more shares before that split now held 60 Shares each = 60 Million * 2 for 1 Split = 120 Million Shares. Meaning Now 6 Million Baby Boomers owned 420 Million Shares which is Lower than the Previous 450 Million However lets continue on.
During Split 3 – Lets say those 5 Million held their Shares and Still hold 30 Shares Each, for a total of  150 Million Shares * 2 for 1 = 60 Shares Each times 5 Million = 300 Million Shares. The 200,000 of the Original 1 Million who double their stock after the initial Split now added 20 More shares. They now own 80 Shares Each * 200,000 * 2 for 1 = 16 Million Shares. The other 800,000 decided to buy 25 More Shares bring there grand total to 85 Shares * 2 for 1 split = 800,000 * 85 *2= 136 Million Shares. Meaning now that a total of 6 Million people own a total of

300 Million Shares + 16 Million Shares + 136 Million Shares grand total of 452 Million Shares.

During Split 4- Lets Say 2 Million sold off their shares and now only 3 Million held their shares of 60 * 2 for 1 split = 120 Shares * 3 Million = 360 Million Shares. The 200,000 of who have 80 decided to buy 20 more bring there total to 100 Shares * 2 for 1 Split = 200 Shares. 200,000*200 Shares each = 40 Million Shares, and Finally the 800,00 0f who had 85 Shares decided to buy 40 More shares bringing total to 125 Shares * 2 for 1 = 250 Shares each * 800,000 = 200 Million Shares . Meaning that Now these 4 Million people own a combined

360 Million Shares + 40 Million Shares + 200 Million Shares bringing their Grand total to 600 Million Shares. Out of the 2.3 Billion shares Available 1,439,688,448 of which are owned by institutional Investments, owners meaning now that

1,439,688,448 + 600,000,000 = 2.3 Billion Shares.

Obviously this is not a for sure, and these are all estimates, but what if there was out of those 4 Million Baby Boomers 1/3 or 1/2 decided to sell off  in a gradually during a 3 year span.

The Stock that has a 52 week low of $57.00 could see more levels close to $45.00-$50.00 range. Meaning why not wait for the storm to happen, and for KO to see Lower Lows!

Personally I believe many of the High Dividend, and High Yield Stocks will be on a Moderate Lower decline over the coming years ahead. I will wait for my Opportunity of  when to get in with KO, However I do not think that time is right now.

 

 

 

 

Starbucks Ueno

Image via Wikipedia

Listed Below are 5 Stocks to add to your watch list the coming week, months ahead.

1. HollyFrontier Corp   – (HFC) (-5%) of which 5 days ago was trading at $37.92. As they just announced they will go ex – dividend tomorrow, many may be dumping there stocks to re buy at a low.

2. Sodastream International Limited -(SODA) (+5%) of which had a 52 week high of $79.72 is currently at $40.00 which is almost 50% off of the high. I am Long SODA, as I feel it has great potential to crank in great Return on Assets, and Equity, Plus net profit, and revenue will continue to jump long term.

3. The Blackstone Group L.P.  – (BX) (+3%) of which is trading around $7.00 off its 52 week high of $19.63 is a sound investment long term. With a 0.10 dividend, and a yield of 3.16. The potential upside, factored in with the dividend payout is solid for many investors to want to eye.

4. MGM Resorts International. – (MGM) (+2%) of which is trading $4.50 off of 52 week highs of $16.94. Even in a down economy, gamblers continue to gamble. Not to mention with the online poker thing still on major crack down, the ones of who used to gamble at home, will be heading to the Casinos, to do there betting. Long Term growth, with a possibility of someday adding a Dividend.

5. Starbucks Corporation – (SBUX) (+.085)  an investment of which I feel could be a stock for the next 10 years. As Starbucks aims for the market overseas, now we can see how big this company can actually get. With the profits, and revenues of which Starbucks generates, the only future ahead for Starbucks is continued growth, and dividend payouts.

Disclosure – I am Long all the stocks named.

The Coca-Cola logo is an example of a widely-r...

Image via Wikipedia

National Beverage Corp. (FIZZ) company of which manufactures, develops, distributes, and markets a portfolio of beverages through the USA.  Their beverage products include soft drinks,juices,waters, and energy drinks.  Some of the key things that I love about this stock is the their potential. With the fact that they literally have no DEBT, and with there EPS growing 3 years in a row it is obvious that they are being run like a business. There Revenue, has also continued to climb in 4 straight years. Now they are no Pepsi, or Coke Cola, but they are managed extremely well.  Not to mention there last Dividend paid out $2.30!! Now many believe that when a company is paying out that much that their is High risk in failing however I tend to disagree when it comes to (FIZZ). As Fool.com pointed out there intangible assets ratio is 8% compared to competitors like Pepsi (PEP) at 45% and Cola (KO) at 34%. Yes these companies are worth are worth 10 times as much as (FIZZ). However (FIZZ) blows (KO)(PEP) out the water in Return on average equity which was 56% last Qt to (KO) 33%,(PEP) 35%. However (FIZZ) cannot compete with their Net Profit Margins. At the end of the day, I feel that (FIZZ) about to eclipse its 52 week High of $16.57, there could be a break out to the high $18.00 or more. Currently I am Long (FIZZ)(KO) and (PEP) however for a young trader who may not have as much money on the table (FIZZ) may be a better buy!

Currently I rate (FIZZ) as a BUY,HOLD HOLD, and a PoulTrend alert has been called 8/30/2011 at $16.00.

Disclosure- Currently I do not hold positions in any of the stocks talked about in this blog post, and have no plans to initiate a position in them for the next 72 hours.