KO

X211499Reddit

Apple (AAPL) 43.3% $167.1 billion Bank of America (BAC) 10.2% $39.5 billion American Express (AXP) 9.4% $36.3 billion Coca-Cola (KO) 6.5% $25.1 billion Chevron (CVX) 5.4% $20.9 billion Occidental Petroleum (OXY) 4.1% $15.9 billion Kraft Heinz (KHC) 3.0% $11.6 billion Moody’s (MCO) 2.6% $9.9 billion Mitsubishi (MSBHF) 2.0% $7.7 billion Mitsui & Co. (MITSY) 1.6% $6.3 billion

Minute-Clue6266

KO

wattap

Coke’s water portfolio leaves something to be desired. Dasani has an image problem, the average Joe thinks that drinking it dehydrates you because of added sodium. KO’s water sales were flat or showed growth of 1% in the last year, whereas Nestle has showed “mid single digits growth” in their water portfolio. On May 1st, KO attempted to rejuvenate the Dasani brand by removing the added sodium from the formula and redesigning the bottle. Whether that will be enough to buoy sales remains to be seen. https://preview.redd.it/k21x46od7yzc1.jpeg?width=768&format=pjpg&auto=webp&s=9da29991ee91a537f706e0d91c39d91e7cee8765

Glittering_Bill9176

TLDR: long KO, WMT, etc. So if social security is income generated from short government bonds given that the US has a deficit, and the tax structure that supports the government is population dependent with the birth rate being under a replacement rate, and the US has been fairly tight on immigration, and income is essentially a long tailed distribution, and those with high incomes typically incur less tax burden if they’re getting capital gains, then the government will never fix the deficit unless either: 1) there are loosened immigration laws, 2) capital gains taxes are treated more similar to income taxes 3) wage/capital returns becomes greater (wages go up) 4) the government decides a to default on a tranche (Greece) 5) federal government spending goes into austerity mode (bankruptcy covenant Greece got hit with). The rising defaults on commercial debt (write offs) compared with consumer debt indicate to me that labor is undervalued at a risk adjusted rate. Makes sense because labor is becoming more and more scarce. Inflation is primarily coming from housing (capital) and oil (primary production input.) oil has been coming down, but will probably still print kind of high for CPI, which will spook the market in the short term. By the next fed decision though, they’ll signal lower rates since oil prices have come down and will likely stay lower (assuming summer demand is lower than forecasted.) the initial forecasting last year by the fed was way too dovish, which isn’t that inspiring of confidence that they are gonna stick the soft landing. They need to pre-cut before inflation is at 2%, otherwise there starts to be systemic risk that starts to cycle to unemployment. Sooo where does that leave us. Long run, divesting from oil (long uranium, it’s undervalued, Atman is right). Short run, since labor is still undervalued, but that value is increase, retail companies/consumer staples should be more bullish. Utilities might be, but only if they keep their divvys up after the rate. Given the non-trivial risk of US default, industrials also looking kind of bullish (particularly defense.) Since I’m seeing this, that means smart people have already seen it and are starting to make a move. Stay away from companies will shitty balance sheets.

culturefan

I would start with well known companies that everyone knows or ones that you use personally: APPL, NFLX, MO, KO, etc.

Lost-Practice-5916

So what that it's old? Forecasting hasn't changed THAT much. It's not just one forecast though. I listen to TONS of earnings calls, do you? They all feel way, way better about 2Q than 1Q. That's why guidance and earnings forecasts are going up across the board. You think it's some kind of conspiracy by all of Wall Street and it isn't. **Actually, analysts tend to undershoot earnings on purpose to create beats. Even with conservative beats companies are doing well.** Companies like KO are still delivering massive 11% revenue growth.

Lost-Practice-5916

This is very interesting actually. Regard Bers are illiterate so when they see headlines like "KO says low income consumer is hurting!" they get all excited thinking their conspiracy bullshit is finally coming true. But if you dig into the actual numbers and earnings call it's actually crazy bullish. Currency neutral, they grew revenue like 9%.

No-Improvement3164

I was looking at KO a few weeks ago

Wytai_mammal

WTF was that with COKE (not KO) yesterday?!? Did not have that one on my bingo card… 😳

creemeeseason

For me, under the radar refers to the fact the no wall street analysts cover the stock. There's lots of really great companies with either no or almost no coverage. They tend to trade really cheap too since they don't get a lot of attention. It's amazing how many of these companies exist. In the case of COKE buybacks work well when a stock is cheap, so it's nice to not get attention. Even before yesterday COKE had outperformed the wildly watched KO over the last 5 years.

EscapedConvictOnAcid

We buying COKE shares guys or is it too late? COKE not KO

ClutteredSmoke

Made 20% on KO options today, not too shabby

ClutteredSmoke

YOLO'd my account on KO calls, let's see how this goes...

creemeeseason

Really nice observations, thanks! So, because I've been bringing it up a lot in this thread, I agree it's not cheap like it used to be. I would be very hesitant to open a new position at this point. I do think the buyback is good short term. Apparently $2 billion is coming from KO to acquire a larger stake in COKE. So that leaves about $1.1 billion from other sources. Also, They generated $187 million in cash flows this quarter. So on an annualized basis, let's call it $748 million. $350 million is going to capex leaving about $398 million. So there's about $700 million coming from elsewhere from this buyback. They had about $584 million in cash/equivalents listed on today's 10Q, so that's a decent chunk too. Honestly, the slowing growth does worry me. Like I said, this one actually had a pretty short leash coming into this report just because it's not as cheap as it was last year, and I don't like the macro. So the buyback is a great gift, but I'll have to think more about how long I want to hold. What are your thoughts?

pl_fanat1c

When I see this stock on social media it makes me nervous. I think it's one of those tickers that benefits from being under the radar and could be harmed by being hyped a lot. That said, thoughts on 1Q: * Like you said weak volume and revenue. * Net income and cash generation was strong vs. last year but it was driven by the lack of a contingent consideration adjustment vs. 2023 1Q. Still operating cash flows increased YoY. On that last point. The contingent consideration agreement between COKE and CCR (80% owned by KO) is very opaque and hard to predict what causes it to change so much sometimes. For example, last quarter in 4Q they had a huge decrease in net income due to a $159.4M charge for contingent consideration. In 2022 this figure was $32.3M why the hell did this balloon so much? It led to an otherwise stellar 2023 to have less profits than 2022. The only disclosure I found in their filings was this: >Changes in any of these Level 3 inputs, particularly the underlying risk-free interest rate used to estimate the Company’s WACC, could result in material changes to the fair value of the acquisition related contingent consideration liability and could materially impact the amount of non-cash expense (or income) recorded each reporting period. The Company estimates a 10-basis point change in the underlying risk-free interest rate used to estimate the Company’s WACC would result in a change of approximately $6 million to the Company’s acquisition related contingent consideration liability. You mentioned this: >They got so cheap they took on debt to do a massive buyback. Note they actually have not taken on debt yet. I would be interested in the structure of the debt. If the terms are not good, I might feel lukewarm about debt to do buybacks as eventually cash must be used to pay this back if rates rise. I wonder if a partial motivation is to actually increase / decrease their WACC? Finally here's the mysterious thing about the contingent consideration. The actual payment gets smaller each year. 2021 / 2022 / 2023 - $39M / $37M / $28M. But the liability is flat or getting larger, $542M / $541M / $669M. It's not as cheap as it used to be. They earned a lot less in 2023 vs. 2022. But if you're comfortable with potential slowing growth and the weird contingent liability thing they could still be an okay buy at these prices perhaps.

pl_fanat1c

When I see this stock on social media it makes me nervous. I think it's one of those tickers that benefits from being under the radar and could be harmed by being hyped a lot. That said, thoughts on 1Q: * Like you said weak volume and revenue. * Net income and cash generation was strong vs. last year but it was driven by the lack of a contingent consideration adjustment vs. 2023 1Q. Still operating cash flows increased YoY. On that last point. The contingent consideration agreement between COKE and CCR (80% owned by KO) is very opaque and hard to predict what causes it to change so much sometimes. For example, last quarter in 4Q they had a huge decrease in net income due to a $159.4M charge for contingent consideration. In 2022 this figure was $32.3M why the hell did this balloon so much? The only disclosure I found in their filings was this: >Changes in any of these Level 3 inputs, particularly the underlying risk-free interest rate used to estimate the Company’s WACC, could result in material changes to the fair value of the acquisition related contingent consideration liability and could materially impact the amount of non-cash expense (or income) recorded each reporting period. The Company estimates a 10-basis point change in the underlying risk-free interest rate used to estimate the Company’s WACC would result in a change of approximately $6 million to the Company’s acquisition related contingent consideration liability. You mentioned this: >They got so cheap they took on debt to do a massive buyback. Note they actually have not taken on debt yet. I would be interested in the structure of the debt. If the terms are not good, I might feel lukewarm about debt to do buybacks as eventually cash must be used to pay this back if rates rise. I wonder if a partial motivation is to lower their WACC? Finally here's the mysterious thing about the contingent consideration. The actual payment gets smaller each year. 2021 / 2022 / 2023 - $39M / $37M / $28M. But the liability is flat or getting larger, $542M / $541M / $669M. It's not as cheap as it used to be. They earned a lot less in 2023 vs. 2022. But if you're comfortable with potential slowing growth and the weird contingent liability thing they could still be an okay buy at these prices perhaps.

Allinmoney

KO with the buybacks!! No other way to show love to your shareholder!!

jgoldston_0

I’d say civilization would likely be better off (socially/politically) without smartphones. A good product doesn’t always mean good for you. MCD and KO will be great stocks for our entire lives, most likely.

Allinmoney

Calls or puts on KO? So I don’t get KO’ed

Comfortable_City7064

Need NVDA back to $600 so I can yolo my KO shares into it

jraiv420

Will my JPM and KO calls print? 

5uckmyd1ckb1t4

>Buffet bought [$AAPL](https://twitter.com/search?q=%24AAPL&src=cashtag_click) in 2016 when it was a $500B company. **Today, it's worth $3T. That's a 600% return.** `The selling of Apple from the portfolio doesn't seem to just be "raising cash." Yes, he raises cash from the sale, but it begs the obvious question...` `Why raise cash from your Apple stake when you could trim from many other companies, including` [`$KO`](https://twitter.com/search?q=%24KO&src=cashtag_click) `CocaCola or` [`$AXP`](https://twitter.com/search?q=%24AXP&src=cashtag_click) `American Express -- or even his energy stocks that have done incredibly well with the recent rise of oil prices like` [`$OXY`](https://twitter.com/search?q=%24OXY&src=cashtag_click) `and` [`$CVX`](https://twitter.com/search?q=%24CVX&src=cashtag_click)`.` `It just makes you question why they chose` [`$AAPL`](https://twitter.com/search?q=%24AAPL&src=cashtag_click) `to sell from...13% decrease is not a small amount...` `Berkshire's` [`$BRK.B`](https://twitter.com/search?q=%24BRK.B&src=cashtag_click) `full holdings by % below:`

Allinmoney

Danmit buffet! I’m I too late for KO calls?

IceOmen

Lmao Warren owned massive amounts of Micky D’s and still owns massive amounts of KO stock. Can you deduce why he would claim to consume both constantly while obviously not? It’s marketing

ConstantOne5578

He told that he sold AAPL due to tax reasons (21%). He said that KO and AXP are great businesses, but AAPL is a better business. Additionally, AAPL will remain the largest investment by end of 2024 according to WB. But he told that the tax rate is most likely up later on (2025). So, he signals potential more selling shares later on.

surfinbird

Buffett loves KO, I’m more of a KDP man myself

hoodrichkinda

Need daddy buffet to announce he’s selling all his KO for CELH he’s now with the hip youngsters and my calls skyrocket

animositisomina35

When is Warren going to dump KO? That stock has been dead money for years.

animositisomina35

Approximately 75% of the aggregate fair value of investments in equity securities as of March 31, 2024, for BRK.B was concentrated in five companies: American Express (AXP) $34.5B vs. $28.4B as of December 31, 2023. Apple (AAPL) $135.4B vs. $174.3B as of December 31, 2023. Bank of America (BAC) $39.2B vs. $34.8B as of December 31, 2023. Coca-Cola (KO) $24.5B vs. $23.6B as of December 31, 2023. Chevron (CVX) $19.4B vs. $18.8B as of December 31, 2023.

soul0304

Wow, I've never imagined seeing someone mentioning Cristiano Ronaldo like he was nobody. I will assume you are American. In terms of famous people in sports, It's like referring to Tom Brady as 'because an American football player did this' or LeBron James as 'because a Basketball player did that'. Ok, rant finished. Now, about the gesture itself, it was an overreaction made by the European media press (Spanish media, Brittish media, and Portuguese media), that was instantly replicated all over the world as true without checking the facts. And the facts are that that day was ex-dividend date of Ko and that's one of the reasons why they opened lower (before the interview with CR) than the closing day before (Friday). And that day, tech stocks were going very well, and that normally means KO will be in the red. So, if there was a reaction by the market from that interview of Cristiano Ronaldo, it was a very marginal one, and should not be given as an example.

Abysswalker794

I think you are referring to the Cristiano Ronaldo situation. And I think this was an internet myth. As far as I am remembering KO reported earnings and/or had dividend ex day the same day. Still agreeing with your general statement. Stock market short term is a voting machine. Long term fundamentals will determine the story of the stock.

smohyee

PG KO GE Some of the longest running on the index

Tradetard_Len

Hmm also ich hab mit beidem ganz ordentlich verloren würd ich sagen, deswegen Hebel ich net mehr so oft, aber ich kaufe weiter die Aktien die mich gef...t haben. Hab damals so 10k€ in VW gesteckt wo die so bei 220€ waren :-) Hab aber auch nen 800€ PayPal KO ausgeklopft bekommen weil die Zahlen wie seitdem immer scheiße waren.

Coffee-and-puts

Cramer just said managers at chipotle make 200k/year. I present to you their wages: https://www.glassdoor.com/Salary/Chipotle-General-Manager-Salaries-E15228_D_KO9,24.htm

ImJoeontheradio

KO crushed. Need those Diet Cokes to wash it down.

Stinky_Pinky4-Life

Just add it to the pile of CMMC, FedRAMP, SSDF, DOD CIO Memo and whatever the DHS or others customize to add to the contractor pain train. All the without allowing direct charges (so far). Most bigs are way behind and will just exclude FAR/DFARs or not compete. KO’s will agree because they need shit now. It’s all smoke and mirrors.

Desmater

Exactly, companies diversify and add new revenue streams with new products or acquisitions. Reason I own PEP and KO. Collect the dividends and take the capital appreciation.

Goatey

I'm quite confident you still purchased products that were produced by $KO and for that I appreciate your support.

Conscious-Aspect-332

Not a bearish or bullish move, it's specific to the company. KO makes tons of cash, so it gives it out to shareholders. No need to keep all that cash, this is attractive to potential buyers. MSFT and LLY have both paid a dividend for a long time and have seen great growth in the past several years.

cutsplitstak

How do you make money with in the money calls if you only think the market will go down? Sure some companies are going down. I have sold a call on KO now im -600% may 10th it will be called away. Sure if i was long the call i could sell the call for a profit and keep my shares.

Desmater

I like how a lot of comments say they don't buy soda. But KO owns so many things you might buy that is not soda. Smart Water, Powerade, Bodyarmor, Gold Peak Tea, Minute Maid, Dasani, Peace Tea, etc. They also distribute for Monster Energy MNST and Dunkin' Donuts. So Monster, Bang, Reign Energy, etc. I just collect my dividends.

matthewmc23

I was gifted 5 shares of KO in December 1996. I was too little to understand what it was. I haven’t touched it. Now it’s 19.1 shares and up over $1,000 total A safe pick but I’d invest in something else with better potential returns

Wolf_of_balls_street

I mean duh? KO is a dividend king, it’s known for being flat most of the time my man

hoodrichkinda

KO beat and raise guidance and flat 

MrGrinsch

Short on 3M with KO 101.29$... It seems like I get burned :/

320th-Century

KO: what capital gains?

PsychologicalTaro398

KO to the moooon 🚀

gimletknight

I haven't seen any mentions of KO... Is there a reason?

andrewhy

I mean, it's Coca Cola. The most popular soft drink in the world. The cola wars have ended, and Coke ultimately won the war. KO is what you'd call a blue chip stock. It's stable and pays a dividend. Now, it won't soar like a tech stock, nor will it decline like one. Or you could do what others recommend and just buy SCHD.

Firemeupbaby2009

KO is a value stock that goes up slowly and steady over time. It will not make you rich quickly but when the markets are going down KO is a safe haven stock because even during the depression people bought sodas. As others have said just buy index funds that mirror the SP500. It has a basket of consumer staples stocks that will generate healthy returns in good times and bad. You can also look at the XLG is you want a more concentrated portfolio. This ETF tracks the Top 50 companies in the S&P and also has great returns over time.

_amillionaday

Thanks. I wish I had your patience though. But yeah, can’t tell today. We shall see how that goes. Though today, I got my eyes on Coca Cola (KO) might be massive (strong on might)

Sea_End_1893

Nobody knows the future. Projections are just financial fanfiction. If you're so specifically worried about it, buy VOO. Many institutions offer partial shares so there is no reason not to have like, $1 of KO and $1 of PEP...

ApplicationWeak333

Tomorrow is a big day for the consumer between MCD, KO earnings and consumer confidence. SPX calls 1% OTM were 10$ today. Hope yall picked up some of the cheap lotto tickets

ryannynj

also MCD and KO will probably shit the bed before market when they report earnings

D_Yass

KO boutta announce AI soda

Jjgu30

PE is a meme. If you truly believe it go back to buying KO and MCD stocks. Or meet me behind Wendy’s and I can show you a good PE ratio.

_amillionaday

KO(coca cola) calls✅

nycimt

Anyone get $KO

nahhhhhrd

Puts on KO

JeromePowellLovesMe

!banbet KO 58.87 14D

yerrmomgoes2college

KO and JNJ are classic value stocks lol

JeromePowellLovesMe

Who has the bigger F/X headwinds? KO or MCD? Picked up ATM puts on both and both for the same reason. Yes, I know DPZ killed it.

Oliwier__

Question about investing. Hey all, First of all I am from France, sorry for any spelling mistakes ! I am a 20yo engineering student working on my free for some years now. Income : Around 14k€ per year, roughly 1200€ per month Expenses : 300€ /month for a student loan (20k€ which are on a saving account / 18k€ remaining as of today) 50€ /month for a Term Life Insurance (a little different from what are existing in US for my understanding) Around 700€/month for my daily expenses Total : 1050€/month (12,5k per year) Balance : + 150€/month Savings : 30k in total (including the loan) - 29,7k on savings accounts (3% interest rate in France) - 300€ that I started to invest in stocks (100€ on S&P500, then divided on various stocks (AAPL, NVDA, KO,...) Goal : Long term : build a passive income and having a retirement fund Mid term : save money for buying a house (with loan) in 10 years +/- Short term : save money, do not spend much and try to invest, while leaving on saving accounts a 6 months income reserve Question : do you have good investment ideas ? I think about S&P500 or other ETFs massively + in like 10/20% sharing others stocks ? Thanks in advance for all help and advices !

RetirementGoals

Really don’t understand that though process. Just because a stock offers dividends does not mean it’s not a growth stock or become stalled. Soooo many offer dividends yet are still considered growth: MSFT, KO, SHW, JNJ, IBM, TGT and so on and so forth

Own-Wolverine-5361

Boxer dies at 27 after brutal KO. Boxing should be banned

Cum-Financia1Advis0r

I would snort KO off Sky Bri's anus

Repulsive_Drawer_842

KO STILL ONLY $60. ROOKIE NUMBERS

SexBeforeChurch

KO $70 5/17

VonDebag

KO

nicovedgar

Coca Cola anyone? They say will use AI in partnership with Microsoft to improve marketing. After zucc fu..cked the market last week, do you think KO will go down if they announce to use AI for Marketing and shit?

towniediva

Good advice! It is possible to find lower cost options, but you can rule out magnificent 7. I actually did a real trade on KO this week after researching my paper trades. Bought Monday, $77 total per contract, sold for $208 Friday (didn't want to hold over weekend). That last long red 5m candle made me happy I sold,even though earnings aren't until next week. But this was virtually the only one I could justify spending real money on. I'm sorry, no I can't put up $6500 for a single nvda contract (wish I had the money to, though, major fomo)

twelve112

First purchase was KO back in like 2007. Held it the whole time. But I should have held the Google ipo. Sometimes it's hard to hold stuff that goes to fast vs stuff that moves at snail pace

peter-doubt

About 60% of BRK.b is direct investments in wholly owned subsidiaries. (BNSF, GEICO, etc). Another 20% is investments in AAPL, KO, BA, AXP, and other lesser portions of major corporations. The remainder goes to indices, and bonds. How much of how little is within the feedback loop you're pointing out? It's just another store of liquid assets to them

SnS2500

VTI is up 5.16% for 2024. QQQ is up 3.78% for 2024. SCHD is up 1.88& for 2024. KO is up 5.61% for 2024. Congratulations on buying them this past month when they dipped a bit.

ajstyle33

All in on KO puts or soy call

Deep_Slice875

Granted it’s not an ETF, but you might consider KO as a low-stress entry point.

Nani_The_Fock

I want to like WM but MAN it grows slow and the dividend is mid. It's like the boomerest stock that's ever boomed. It won't fail you, but too conservative for my tastes, whether times be fat or lean. If I wanted slow growing that pays dividend I'll just buy consumer defensive like PEP or KO.

hermeskino715

Every tech company loves to mention the KO

hoodrichkinda

KO calls I’m betting on fairlife being huge

WildConsideration376

MSFT CALLS ..this shit will explode ."Microsoft’s AI ambitions got a healthy boost on Tuesday when it announced that Coca-Cola (KO) signed a five-year, $1.1 billion agreement to use the software giant’s Azure cloud services and AI technology."

Ok_Enthusiasm_5822

KO moonshot 

BetweenCoffeeNSleep

I don’t use picked stocks for long term holds. All of my long term stuff is index based. I won’t hold a stock without a specific thesis, and I think it’s very difficult to nail a thesis over a long timeframe. All of my picks are 1-7 month swing trades. For the sake of conversation, though… if I had to pick 5 blindly, I’m taking 5 very stable companies. BRKB, JPM, PG, V, KO.

skinaked_always

The market loves bad news (TSLA) and hates good news (META and KO beating expectations 5 earnings in a row). It makes no sense and shows how manipulated the market is nowadays

Parking_Debt2167

CCL to the moon! 🚀 Cruising back to pre-COVID levels, $3B raised, 16.79% yield, new COVID protocols. Meanwhile, TSLA and META are overpriced and due for a correction. KO and PEP may be up, but they're not growing like CCL. Dividend yield? Who needs it when you can have a piece of the cruise industry's comeback. I'm buying. CCL from the ocean to the MOOOON!!!!!! 🚀 🚀 🚀 🌕🌕🌕🌕🌕🌕🌕🌕

HereticBurger

KO and PEP just quietly up big Diabetes for the win

Premier_Legacy

MSFT and KO announce $1.1B air cloud AI partnership. Tops in bois 

Kawabuchi

42yo, HCOL area, but decent salary. No debts outside whatever gets charged to the credit card each month. Looking to make a change in my taxable brokerage account. What are your thoughts on me dumping my KO shares (108-ish shares, gain of about $400 over the last few years), and buying up a few shares of Amazon or Google or something more growth oriented?

ama155

Is it priced in KO already!?

Hawkpro

What is KO milk?

tendytime69

KO milk

sockalicious

Warren only bought KO, he is only half right!!!!

sockalicious

I just came up with the most brilliant pair trade. Buy KO. And at the same time, buy PEP. If beverages win, you win. And everyone drinks beverages. Literally can't lose!

Opposite_Engine_6776

 I got Ryan Garcia by KO

ADynes

Greenest things in my port right now are KO and LW. Apparently pop and french fries are recession proof which kinda makes sense.

Aymn_mohd

Currently in Panic in what should i do. If anyone have advice on this please let me know. For context I am 18M investing around 235$ in the stock market for around 3 months. My Portfolio includes: SPUS - bought at 37$ i have around 145$ worth shares NVDA - brought at 901$, invested around 77$ KO - recently bought, have around 9$ worth. For the past month the market has been in downward spiral and i am not sure in what i should do. My biggest loss are NVDA. should i sell them of or hold and hope for the best. If anyone have advice please let me know. FYI - right now my portfolio is worth 228

Bambus174

New Coke is a bad example. It came because KO was losing market share to Pepsi and Pepsi drink was being rated as better tasting in blind tests. And in the end the theeat of losing the original is what saved the original.

bigloop123

👏🏻👏🏻👏🏻👏🏻 Great post! KO!

thedukeofno

KO

wattap

KO: green

ADynes

My 100 shares of KO are red which is un-American and I won't stand for it.