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Coca-Cola Struggles & General Electric Has Déjà Vu

Coca-Cola: Buffett's Prized Stock Struggles With Growth

Summary

  • KO’s reliance on soda worries me.
  • In recent quarters, KO has reported lackluster sparkling beverage volumes.
  • Americans are becoming more averse to carbonated beverages.
  • Addition of AdeS to KO’s still portfolio will help the company seize some of the increasing demand for still beverages.
  • Nonetheless, much more needs to be done in the still portfolio to offset a declining sparkling portfolio.

By S. Hasan Abid

Americans are increasingly turning away from soda. Will Coca-Cola reverse the trend or go with it?

Ever since being trademarked in the U.S. in 1944, Coca-Cola (NYSE:KO), today, has become the world's largest manufacturer and distributor of non-alcoholic beverage syrups and concentrates. With an operational reach encompassing more than 200 countries, KO is arguably the most valuable and recognized brand in the world.

KO has come a very long way. Just think about it; way back in 1886, John Pemberton's Coca-Cola, on average, served a mere 9 people daily. This figure has now risen to a staggering 1.9 billion people! But what does the future hold for KO... CONTINUE READING



General Electric: It's Like Déjà Vu All Over Again

Summary

  • Current changes at GE are reminiscent of the kind made by Jack Welch in the 1980s.
  • The company is vastly different than it was just a few years ago.
  • The catalysts for long-term growth are multi-faceted.
  • Solid fundamentals offer continued long-term dividend growth.

By Tony Termini

I believe that the nearly complete metamorphosis of General Electric (NYSE:GE) puts the stock into a position where its growth prospects will rival those seen in the 1980s. To me GE is a buy right here, right now. Before I get to valuation, I want to compare what's going on at GE now with the GE of some 35 years ago.

In 1981 when Jack Welch took over as Chairman & CEO of GE it was a typical stodgy old industrial conglomerate whose way of doing business had not changed since the 1950s. It was a typical patriarchy in which everyone knew their place and bureaucracy ruled the day. At the time GE remained in businesses that were not core to its operations or which were not leading players in their respective industries. Jack Welch changed all that... CONTINUE READING

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