Thursday, October 19, 2006

Coca Cola: Potential Purchase?

From: WSJ

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The Atlanta beverage giant said Thursday that third-quarter net income increased to $1.46 billion, or 62 cents a share, compared with $1.28 billion, or 54 cents a share, in the year-earlier period, when per-share results were dragged down three cents by an asset write-down and tax change.

Revenue climbed 6.9% to $6.45 billion from $6.04 billion.

Coke repurchased $1.2 billion of its stock year-to-date and currently intends to repurchase a total of $2.0 billion to $2.5 billion of its stock for the full year.

Enviga, a new green-tea beverage that Coke says burns calories, will be rolled out in the New York-Philadelphia region Nov. 6, with a national launch in February.

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From: Yahoo Finance

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Price per share: $44.92

Market Cap (intraday): 105.13B
Enterprise Value (19-Oct-06)3: 103.77B
Trailing P/E (ttm, intraday): 20.90
Forward P/E (fye 31-Dec-07) 1: 17.88
PEG Ratio (5 yr expected): 2.40
Price/Sales (ttm): 4.42
Price/Book (mrq): 6.01
Enterprise Value/Revenue (ttm)3: 4.46
Enterprise Value/EBITDA (ttm)3: 13.383


Profit Margin (ttm): 21.85%


Return on Assets (ttm): 14.24%
Return on Equity (ttm): 30.41%

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Why is Coca Cola a potential purchase?

  1. Results are improving.
  2. Management is doing the right thing of buying back shares.
  3. Berkshire Hathaway is the largest shareholder.
  4. It is an "inevitable" company.

How do you enjoy Coca Cola fortune?

  1. You could enjoy a can or cans of Coke. :)
  2. Invest in its company.
  3. Invest in Berkshire Hathaway!

Happy investing,

Dah Hui Lau (David)

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