Thursday, December 22, 2005

El Coke es el



Possible idea for a unilateral pairs trade. Long KOF: short KO.

Latin America booming, hedge against USD decline, favorable demographics, Coke "seems" cooler and has better brand equity overseas, KO has poor execution and can't get a good energy drink/non-carbonated drink going (KO should have bought out HANS or Red Bull or even the old Quaker Oats in 1999). Is everyone at KO brain dead....do they suffer from a lack of imagination?

No reason to own KO unless you are an index investor (even then you're better off long SPY and short KO's percentage in SPX).

 

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