Posts for Ticker ‘KO’

Buffett & Berkshire Hathaway Q3-2009 Holdings A to F (BRK-A, AXP, BAC, BDX, BNI, KMX, KO, CMCSA, CDCO, COP, COST, XOM, ETN)

BuffettImage gates foundation Berkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) has shown its Q3-2009 holdings as of September 30, 2009.  We had already seen how his securities holdings were up on the books in the holdings with earnings.  There are also some portfolio changes that have taken place since the September 30 cut-off date.  These have been broken down into 3 groups of ‘A to F’ and ‘G to O’ and ‘P to Z’ so it is more concise and clear.  Here are Warren Buffett’s holdings and accompanying notes for the group ‘A ot F.’

  • American Express Co. (NYSE: AXP) over 151.6 million shares, same as last quarter.
  • Bank of America Corp. (NYSE: BAC) 5 million shares; same as last quarter.
  • Becton Dickinson & Co. (NYSE: BDX) 1.2 million shares, same as last quarter.
  • Burlington Northern Santa Fe (NYSE: BNI) was reported as 76.77 million shares but frankly it does not really matter as BNSF is becoming part of Berkshire.
  • Carmax Inc. (NYSE: KMX) 9 million shares is same as last quarter.
  • Coca Cola Co. (NYSE: KO) right at 200 million shares, still same as before.
  • Comcast (NASDAQ: CMCSA) 12 million shares, same as before.
  • Comdisco Holdings (NASDAQ: CDCO) roughly 1.5 million shares, same as before.
  • ConocoPhillips (NYSE: COP) 57.43 million shares, DOWN FROM 62.485 million at the end of June.
  • Costco Wholesale (NASDAQ: COST) 5.254 million shares, same as before.
  • Exxon Mobil Corp. (NYSE: XOM) is a NEW HOLDING of 1.276 million shares.

Eaton Corp. (NYSE: ETN) was NOT LISTED ANY LONGER, so sold from holdings.

BUFFETT HOLDINGS G to O

BUFFETT HOLDINGS P to Z

You can join our open email distribution list to hear more news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, key analyst calls, and more.

JON C. OGG

The 100 Hardest Working Brands In The World

hersheyThere are a number of ways to rank brand values. One of the most important is the level at which a brand contributes to the market value of a public company.

24/7 Wall St. asked Corebrand, the brand research and consulting firm, to look at the top 100 brands based their contribution to market capitalizaton. Using this method, the hardest working brand was Hershey (NYSE:HSY), followed  by Coca-Cola (NYSE:KO) and Harley-Davidson (NYSE:HOG)

Corebrand described the process briefly to 24/7 Wall. St.

24/7 Wall St.: Corebard often refers to the brands on this list as the”hardest working brands”. How did you come to that description?

Corebrand: There are a lot of people measuring and examining the “strongest brands” or the “most valuable brands”.  Our opinion is that examining one without the other is somewhat meaningless.  How “strong” a brand is nice to know but not very relevant unless you understand how that strength benefits business.  Similarly, “value” is little more than a measure of corporate size unless you understand the drivers of that value and how to influence it. By examining the strength of the brand and it’s contribution to total market value, we can help companies and their leadership manage that strength and value over time.

24/7 Wall St.: Is there any advantage or disadvantage to having a brand value be a very large percentage of market cap in the present and as an indication of a company’s future performance?

Corebrand: The brand will need to be in balance with the rest of the company’s assets.  A company should strive to have it’s brand strong enough to fend off competitors or changing market conditions but not so strong that it becomes overly dependent on the brand as a single driver of value.  If a company can achieve and maintain its appropriate maximum strength without becoming over-dependent, it will see greater returns in bull markets and retain greater value in bear markets.

The list: Read More »

Coke (KO) Lite

bearThird quarter earnings at Coca-Cola (NYSE:KO) came in under expectations which is pushing shares down before the open.

Revenue fell 4% to $8.4 billion. Net income was flat at $2.15 billion. EPS was also flat at $.81.

Sales in Eurasia & Africa, which should be relatively good, were off 9%. Sales in Europe dropped 10%. Read More »

5 Wins in DJIA Component Earnings (CAT, KO, DD, PFE, UTX)

Bull and Bear ImageWe have seen the earnings reports from all five DJIA components which were on deck to report this Tuesday.  We are seeing a theme here: almost all posted lower earnings from a year ago that still beat earnings estimates, but this continues the trend that it is on cost cuts and/or on much lower revenues from a year ago.  The earnings came from Caterpillar Inc. (NYSE: CAT), The Coca Company (NYSE: KO), EI DuPont de Nemours & Co. (NYSE: DD), Pfizer Inc. (NYSE: PFE), and United Technologies (UTX).

We provided details on each, with guidance where appropriate, some added color, and how well these have each done in stock performance since the June 30 close of Q2 and since the March 9 close where traders use as the end of the bear market on the index closing bell basis.
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5 DJIA Components Reporting Tuesday (CAT, DD, PFE, KO, UTX)

Bull and Bear ImageWe have provided some basic details on Tuesday’s earnings reports from DJIA components Caterpillar Inc. (NYSE: CAT), DuPont or EI DuPont de Nemours & Co. (NYSE: DD), Pfizer Inc. (NYSE: PFE), The Coca-Cola Company (NYSE: KO), and United Technologies Corp. (NYSE: UTX).

Included are the earningd estimates from Thomson Reuters.  Then we also gave some added color where applicable.  Lastly, we gave the performance of each stock since June 30 and then the recognized date of the close of March 9 that traders use for the day the bear market died.
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Investor Taste Challenge: Pepsi vs. Coke (PEP, KO, PBG, PAS)

Pepsi LogoCoke LogoPepsiCo Inc. (NYSE: PEP) is trading down after the company’s quarterly earnings report from this morning.  PepsiCo’s earnings were $1.08 EPS on a 1.5% drop in revenues to $11.08 billion, versus Thomson Reuters estimates of $1.03 EPS and $11.25 billion in revenues.  Pepsi did manage to beat estimates, but the amount of the beat appears to be the result of a lower effective tax rate and on some of the cost cutting measures as we have seen at so many firms.  The strength of PepsiCo’s snack food unit could actually highlight a potential weakness at Coca-Cola.  What is interesting is that rival The Coca-Cola Company (NYSE: KO) is down a fraction of what has been in seen in PepsiCo shares.
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Top Analyst Upgrades (ANF, CSCO, KO, GR, HMY, KSS, NWS-A, DIS, VIA-B)

These are this Wednesday mornings top pre-market analyst upgrades and positive research calls we have seen early on from Wall Street:

Abercrombie & Fitch (NYSE: ANF) Raised to Equal Weight at Morgan Stanley.
Cisco Systems (NASDAQ: CSCO) Raised to Outperform at William Blair.
Coca-Cola (NYSE: KO) Raised to Buy at Deutsche Bank.
Goodrich (NYSE: GR) Raised to Outperform at FBR Capital.
Harmony Gold (NYSE: HMY) Raised to Buy at Nomura.
Kohl’s (NYSE: KSS) Raised to Overweight at Morgan Stanley.
News Corp (NWS-A) Raised to Buy at BofA/Merrill Lynch.
The Walt Disney Co. (NYSE: DIS) Raised to Neutral at BofA/Merrill Lynch.
Viacom B (VIA-B) Raised to Neutral at BofA/Merrill Lynch.

You can join our open email distribution list which goes out several times per week for reminders of the top day trader alerts, analyst upgrades and downgrades, IPO’s, key secondary offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG

Media Digest 10/7/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Wealth management firms are starting to target the not-so wealthy.

Reuters:   Gold’s record price drew a muted response.

Reuters:   Google (NASDAQ:GOOG), Microsoft (NASDAQ:MSFT), and Palm (NASDAQ:PALM) are heating up the smartphone software race. Read More »

The 100 Most Valuable Brands Of 2009?

bearSeveral consulting firms post annual figures for the world’s most valuable brands. The two best known are probably the Interbrand and BrandZ surveys. They are notably different, up until now at least. BrandZ includes a number of large brands from Asia. Interbrand does not.

24/7 Wall St. has put together a list of the most valuable brands of 2009 by looking at valuation calculations from a number of sources. Then a base valuation was taken from the 2008 Interbrand data to fix values for this year and changes from last.

Most methods take into account the future earnings of a brand for its parent company. This is fundamentally a guess particularly during a turbulent period in the global economy. Interbrand’s rule is that a brand most get at least a third of its revenue from outside its country-of-origin. That is arbitrary, particularly as it apply to brands in China.

24/7 Wall St. has made the assumption that the value of most brands have been hurt log-term by the deep recession.  Forward earnings estimates for many of the firms on this list show that. Those brands which post value improvements show much more modest increases than they would be in a stable economy.

Looking at the Interbrand list from last year, it is fair to ask why firms like Nissan, Wal-Mart (WMT) and Red Bull are not present.

Because the brands on this list are taken from names on the Interbrand survey, we have not made a calculation about which companies may be new to their list in 2009 or which may drop off.

Public firms which are part of this ranking include (KO)(IBM)(MSFT)(GOOG)(GE)(NOK)(TM)(INTC)(MCD)(DIS)(HPQ)(AXP)(C)(HMC)(ORCL)(AAPL)(SNE)(PEP)(HBC)(NKE)(UPS)(FDX)(SAP)(DELL)(JPM)(GS)(KL)(EBAY)(SI)(F)(AIG)(AMZN)(CAT)(AVP)(RIMM)(GPS)(TIF)(BP)(SBUX)(JNJ)(MAR)(V)

The 100:  Read More »

M&A: America’s Top Companies Hold $335 Billion Cash (XOM, MSFT, JNJ, PG, BRK-A, IBM, T, AAPL, GOOG, CVX, CSCO, KO, INTC, ORCL, BAC, WFC, JPM, GE, PFE)

Money Stack ImageNow that we are out of the woods in the crash scenario, assuming this week is no ill omen, investors may want to know which of the big companies would start to deploy their billions and billions of dollars in cash for large mergers or strategic bolt-on acquisitions. In all of these companies, we are not taking the long-term or short-term debt obligations into account.  This is merely the cash, cash equivalents, and the long-term investments listed on the books.

But as these are the biggest companies in the world with what should be credible balance sheets (in most cases anyhow), we are also including a second combined figure for “receivables and inventories” for a few of these companies to show what the firms could use for additional sources of capital…. These figures do not include untapped credit lines and shelf registrations which could amount to untold billions more.  Because of this calculation, our figures may differ slightly from what companies have listed  as cash and equivalents.

Can all of this cash go for mergers?  What about for dividends?  No way.  But a large portion of it could be used for mergers and buyouts under the right circumstances.  We removed the companies which are either permanently out of the game of M&A or those which are temporarily out of it.  But of the fourteen mega-caps (over $100 billion in market cap) which we did cover, you would be shocked at the cash balance these companies are sitting on without even considering the total cumulative effect of credit lines, inventories, receivables, and open shelf registrations.  The first total cash figure comes to a whopping $335 billion.  This number is far more if you count the companies with exceptions.

These major companies broken down by cash balance and what sort of merger these could consider are Exxon Mobil Corp. (NYSE: XOM), Microsoft Corporation (NASDAQ: MSFT), Johnson & Johnson (NYSE: JNJ), Procter & Gamble Co. (NYSE: PG), Berkshire Hathaway Inc. (NYSE: BRK-A), International Business Machines (NYSE: IBM), AT&T Inc. (NYSE: T), Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG), Chevron Corporation (NYSE: CVX), Cisco Systems Inc. (NASDAQ: CSCO), Intel Corp. (NASDAQ: INTC), Oracle Corp. (NASDAQ: ORCL).  Even after a huge rally, $335 billion and then some could go a very long way.
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Defensive Stocks Offering No Haven (WMT, PEP, KO, TAP, KFT, CAG, CPB, HRL, MCD, MO, VGR, RAI, PG, CL, MRK, JNJ, NVO)

Burning Money PicWasn’t it just last week that we were up eight days in a row on the DJIA?  And now we have a sell-the-news reaction to the recent growth numbers.  Maybe it is because we ran too far too fast and because we started pricing in robust growth rather than muted growth.  But generally when equities have stayed hot and then start to sell off in profit taking or in case things got too heated, you at least see a migration into some of the defensive stocks.  That is not the case.  In our normal 16 Defensive Go-To Stocks, only ONE was up.  If you throw in Wal-Mart Stores Inc. (NYSE: WMT) as the ultimate defensive stock like we usually do, then you have only TWO of 17 trading up on the day….

PEPSICO INC (NYSE: PEP) $56.1805.. Down $0.4895; -0.86%
COCA COLA CO (NYSE: KO) $48.58.. Down $0.19; -0.39%
MOLSON COORS CO. (NYSE: TAP) $47.01.. Down $0.37; -0.78%
KRAFT FOODS INC. (NYSE: KFT) $28.08..  Down $0.27; -0.95%
CONAGRA FOOD INC. (NYSE: CAG) $20.13.. Down $0.40; -1.95%
CAMPBELL SOUP CO. (NYSE: CPB) $30.86.. Down $0.50; -1.59%
HORMEL FOODS CORP. (NYSE: HRL) $37.00..    Up 0.05; +0.14%
MCDONALDS CORP. (NYSE: MCD) $55.72.. Down $0.51; -0.92%
ALTRIA GROUP INC. (NYSE: MO) $18.13.. Down $0.16; -0.83%
VECTOR GROUP LTD. (NYSE: VGR) $15.71.. Down $0.07; -0.44%
REYNOLDS AMERICAN (NYSE: RAI) $45.17.. Down $0.54; -1.18%
PROCTER GAMBLE CO. (NYSE: PG) $53.05.. Down $1.06; -1.96%
COLGATE PALMOLIVE (NYSE: CL) $71.82.. Down $0.89; -1.21%
MERCK CO INC. (NYSE: MRK) $31.79.. Down $0.64; -1.97%
JOHNSON & JOHNSON (NYSE: JNJ) $59.88.. Down $0.56; -0.92%
NOVO NORDISK (NYSE: NVO) $60.024.. Down $0.986; -1.62%

Oddly enough, Wal-Mart is the ONLY one of the DJIA 30 components trading higher this afternoon.

JON C. OGG
SEPTEMBER 1, 2009

Buffett & Berkshire Hathaway Q2-2009 Holdings A to F (BRK-A, AXP, BAC, BDX, BNI, KMX, KO, CMCSA, CDCO, COP, COST, ETN, CEG)

Buffett ImageBerkshire Hathaway Inc. (NYSE: BRK-A)(BRK-B) has shown its Q2-2009  holdings as of June 30, 2009.  There are some portfolio changes that have been seen here from the end of Q1 and we have broken these down into 3 groups of ‘A to F’ and  ‘G to O’ and ‘P to Z’ so these are easier to see on one page.  Here are Warren Buffett’s holdings and accompanying notes for the group ‘A ot F.’

  • American Express Co. (NYSE: AXP) over 151.6 million shares, same as  before.
  • Bank of America Corp. (NYSE: BAC) 5 million shares; same as last quarter.
  • Becton Dickinson & Co. (NYSE: BDX) appears to b a new holding over last quarter according to our records.  Berkshire holds 1.2 million shares (listed in SEC filing as Beckton Dickson).
  • Burlington Northern Santa Fe (NYSE: BNI) 76.77 million shares; same as Q1 after the Q1 position was raised from Q4.
  • Carmax Inc. (NYSE: KMX) 9 million shares is lower than the 12 million in Q1 and marks three straight quarters of declines.
  • Coca Cola Co. (NYSE: KO) right at 200 million shares, still has stayed the same as before.
  • Comcast (NASDAQ: CMCSA) 12 million shares, same as before.
  • Comdisco Holdings (NASDAQ: CDCO) roughly 1.5 million shares, same as before.
  • ConocoPhillips (NYSE: COP) was listed as 62.485 million, which is officially lower than the Q1 period but we had already been told of cuts after that date so mostly the same.
  • Costco Wholesale (NASDAQ: COST) 5.254 million shares, same as before.
  • Eaton Corp. (NYSE: ETN) 3.2 million shares; looks like new holding but may have been missed before.
  • Constellation Energy Group (NYSE: CEG) appears to be completely sold off now.,but this was already being cut.

BUFFETT HOLDINGS G o O

BUFFETT HOLDINGS P to Z

You can join our open email distribution list to hear more news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, key analyst calls, and more.

JON C. OGG
AUGUST 14, 2009

Tracking The Value Of The World’s Major Brands

apple
Several companies run annual brand valuations. It is a good business for advertising and marketing firms to be viewed as experts on brands. Brand values are based on the cash flow they create, and there are a number of ways to measure that. The mathematical parts of the formulas are relatively easy. The part that is hard, because it requires skilled forecasting, is what the reputation and value of a brand is likely to be three or four years from the date the values are set. It would have been hard half a decade ago to predict that AIG (AIG), the brand of the world’s largest insurance company, would be virtually worthless today, or that Facebook would be an extremely valuable brand. There is both art and science to determining the future of brands. Read More »

Suddenly All Is Well In Bottling Mergers (PEP, PBG, PAS, COKE, CCE, KOF, CCH, KO)

money-stack-imageThis morning we caught the news on a volume alert, but there was no confirmation of the news.  Now, we have the formal release from PepsiCo (NYSE: PEP).  Pepsi has capitulated and decided to offer more for its acquisitions of The Pepsi Bottling Group, Inc. (NYSE: PBG) and PepsiAmericas, Inc. (NYSE: PAS).  Both bottlers agreed and signed definitive merger pacts with PepsiCo.

Interestingly enough, this could have traders (and investment bankers) looking toward Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE), Coca-Cola Enterprises Inc. (NYSE: CCE), Coca-Cola FEMSA S.A.B de CV (NYSE: KOF), and Coca-Cola Hellenic Bottling Company S.A. (NYSE: CCH)… all of which are tied to The Coca-Cola Company (NYSE: KO).
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Media Digest 7/22/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   A tech alliance between China and Taiwas is hurting Korea.

Reuters:   Spple (AAPL) easily beat forecasts.

Reuters:   CIT (CIT) still faces a number of financial challenges.

Reuters:   Yahoo!’s (YHOO) outlook was below expectations.

Reuters:   Bernanke says unemployment could hurt the recovery. Read More »

Predicting The Value Of The World’s Most Valuable Brands For 2009

appleOnce a year, Interbrand publishes a list of the “Best Global Brands”. The 2008 list was released last September. The next list will probably be out in about two months.

The change in value is some of the top brands is predictable, at least based on the Interbrand calculations. The firm says its “methodology evaluates brand value in the same way any other corporate asset is valued—on the basis of how much it is likely to earn for the company in the future. Interbrand uses a combination of analysts’ projections, company financial documents, and its own qualitative and quantitative analysis to arrive at a net present value of those earnings.” While that formula cannot be entirely recreated, using the same rules, it is possible to look ahead at 2009 values. It is also worth noting that the worth of the top brands on the Interbrand list moves very little. Last year, Citigroup’s (C) valuation dropped only 14%. The average movement in the top twenty brands was in a range of +/-6%.

The Interbrand survey is also subject to “brand inflation”. Even though 2008 was a hard year for most companies, of the leading 100 brands, only eighteen dropped in value with a large number of these being financial services firms.

Read More »

DJIA Component Earnings Trifecta (DD, MRK, UTX)

Money Stack ImageSo far we have three DJIA components with earnings out.  DuPont (NYSE: DD), Merck & Co. (NYSE: MRK), United Technologies (NYSE: UTX) have all posted earnings.  So far there are no train wrecks and technically these are above the Thomson Reuters consensus estimates as far as the earnings per share numbers numbers are concerned.  All details are below.
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Earnings Previews for 11 of 30 DJIA Components This Week (CAT, DD, MRK, KO, PFE, BA, MMM, AXP, T, MCD, MSFT, MO)

This week will mark the first crest of earnings season as we have 11 of the 30 DJIA components reporting earnings this week alone.  On Tuesday, we have earnings from Caterpillar Inc. (NYSE: CAT), DuPont (NYSE: DD), Merck & Co., Inc. (NYSE: MRK), The Coca-Cola Company (NYSE: KO).  On Wednesday, we have Pfizer Inc. (NYSE: PFE) and Boeing Co. (NYSE: BA) on deck.  On Thursday, we have 3M Company (NYSE: MMM), AT&T, Inc. (NYSE: T), McDonald’s Corporation (NYSE: MCD) and Microsoft Corp. (NYSE: MSFT).  Altria Group, Inc. (NYSE: MO), a fairly recent DJIA-booted also reports Wednesday.  We have detailed earnings estimates and additional preview data below:
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CoTweet, Major Brand Twitter-Platform Gets VC Funding (WFMI, SBUX, MSFT, JBLU, F, PEP, S, KO)

Money Stack ImageNo one knows how to value social media’s dominant players.  The real value for Facebook, LinkedIn, MySpace is elusive (and less than before).  Twitter is one of these businesses which suddenly has all the buzz, yet find someone who can tell you what the ultimate monetary value of Twitter is.  Many older internet users are hardly familiar with the term ‘blogging’… let alone microblogging.  But today a company operating as a Twitter platform operator and brand manager has received venture backing.

CoTweet is a web-based collaboration platform that helps companies reach and engage customers in real-time using Twitter for brand management. The product is already said to be used by Whole Foods Market Inc. (NASDAQ: WFMI), Starbucks Corp. (NASDAQ: SBUX), Microsoft Corporation (NASDAQ: MSFT), JetBlue Airways Corporation (NASDAQ: JBLU), Ford Motor Co. (NYSE: F), PepsiCo (NYSE: PEP), Sprint (NYSE: S), and The Coca-Cola Company (NYSE: KO)
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The Death Of Brands: Passing Up Advil For Aspirin

bucksWho needs Advil when it is more expensive than aspirin and probably does no better at reducing pain? Who needs Starbucks (SBUX) when Maxwell House has just as much caffeine?

A new survey of purchasing data from 23,000 stores conducted by the Pointer Media Network  shows that many shoppers are simply walking away from their favorite brands because they can’t afford them due to high prices during a recession. Read More »