Coca-Cola (KO) and Church & Dwight (CHD):Trading Transparency
Earlier this week (10/20/09) I sold my 50 shares of Coca-Cola (
KO) at a price of $53.38 and purchased 48 shares of Church & Dwight (
CHD) at a price of $55.61. As part of my own "trading transparency", I wanted to share with you my own thoughts behind this decision and update you regarding my current strategy.
There is no doubt in my mind that Coca-Cola (KO) remains one of the top international brands of 2009 and of all time! Like my own admiration for Colgate Palmolive (CL) that I have written about previously, I would like to add Coke to my portfolio again some time in the future. However, this week the company announced 3rd quarter results that were a little 'flat' and the market responded with a pull-back in the stock price.
During the quarter worldwide case volume grew 2% including 37% growth in India as well as a 15% growth in China. In North America, however, sales slipped 4% with a 5% dip in soft drink sales. Perhaps more importantly the company failed to meet expectations of $8.11 billion in revenue, coming in instead at $8.04 billion (down from $8.39 billion the prior year). Earnings of $.81/share were also flat with last year's $.81 but did meet estimates according to Thomson Reuters.
O.K.
The above story is the opinion of the author only and it does not reflect
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