I was going through some of the older threads and wanted to chime in on this one. I'm
still a noob, But I think you have it figured out. I think that whoever got in coke
prehours was waiting for something good in the conference call. Thats why the stock didn't
get sold off untill the end of the call. The reason, you said it, was the decreased
buyback. I'm willing to bet if they kept the buyback the same, you would have saw profit
taking the next day or two, not the same day.

OK I have been sitting here for the last
two hours trying to gain the lessons I learned on Coke reporting. They hit the
estimates, but stock dropped. I went through everything that was written on it
to see why this happened. The reasons like case volume, weaker USA doesn't
connect with the tape. Coke insured their Press Release around 7:00am with the
case # and sales detailed..along with the beat. Pre-market stock is up. Then
about 9:25 the Stock nose dives...it appears it is just towards the end of the
conf call when the stock drops big time...they were discussing the buyback
decrease...I can't tell if it was that or the fact that the conf call was ending
and no one liked it? (For me I was bothered by the fact they failed to even talk
about Full Throttle or other super Energy Drinks...cuz you know I am playing
HANS for the end of month..to amuse myself). So what did I learn...I learned KO
had a good qtr. and maybe the sell off came about from a dull vague cautious
conf call..but I could be wrong. Any other ideas...if profit taking, shouldn't
it happen just when market opens..not one hour later????

This call drove me crazy because not one analyst really asked the questions I thought they
would ask. BUT...I am planning to rip it apart to see why the market took it down and what
can I learn from this...which is WAY so cool. I am glad you have a Forum on it because I
want to post my findings.

Tell you something, I don't know how much of their revenues come from sports drinks, but
they have a huge, huge winner with G2.

Seeing it all over my gym. I'm doing 3 quarts a week. Lighter, fewer calories, all the
benefits of Gatorade.

Coca-Cola Company (KO) is the world’s largest soft drink maker and undoubtedly one of
the most recognized brands throughout the world. Coke’s worldwide brand strength was
instrumental in their successful quarterly report released today, which included sales
gains of 24% over last year. Much of the increased revenues were a result of gains in
emerging markets, especially Mexico and China. Global sales by volume increased 5% last
quarter compared to a 6% gain over the previous three quarters combined. Interestingly,
sales were boosted by a rising consumer class in emerging markets combine with the cheaper
Coke products because of foreign exchange fluctuations. The weakness of the dollar—down
10% in the last year-- could be a real strength for KO which can attribute about three
quarters of their revenue to sales outside of the U.S., compared to Pepsi that sells 60%
of its products in the United States.

Coke has adjusted its strategy to accommodate for a shrinking domestic market for
carbonated drinks, which are still Coke’s principal products. Coke management shrewdly
noticed that domestic sales by volume have been falling since 2005, as many consumers
prefer healthier alternatives. In 2007 Coke introduced Coke Zero, a zero calorie
alternative that is designed to taste the same as Coca-Cola. They have been pleased with
the development in sales and have targeted the young male market segment to pull them back
to soda from sports and energy drinks.

Coke is diversifying its product mix to include non-carbonated juices and teas, which is
an area that Pepsi has taken a greater market share with its Gatorade and Nestea lines.
Coke acquired Glaceau; makers of Vitamin Water, for $4.1 billion and these quarterly
results are the first to include sales of this new acquisition. To take a gulp of the tea
market, Coke added a 40% stake in Honest Tea.

The broad stock market is up today but the Coke report has been received slightly
negatively even as they beat estimates. Coke has been a really solid stock for the past
few years and we continue to have it rated very positively. It is trading near the low end
of its normal ranges of price-to-sales and price-to-cash, which in and of itself does not
make it a buy. Coke’s management has proven itself to be more than capable as evidenced
by consistently very strong ROE that has stayed above 30% for the last 6 years. The Ockham
rationally expected price range lies in the $60-$79, so we believe it still has room to
grow.

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