KO and PEP gone global does not equal growth
February 01, 2010
– Comments (8) |
RELATED TICKERS: DPS
Let's put to rest this silliness that a stock like (KO) and (PEP) deserve a P/E of 18 or greater....
Because they are GLOBAL!!!! And DPS only gets a 14 P/E?????
1st Three Earnings Quarters 2009 over 2008:
(KO) Negative 12 cents
(PEP) 2 cents
And Here's NOT GLOBAL (DPS): 8 cents!
That's infinitely superior to Coca-Cola and quadruple the growth of Pepsi.
Look..... (HANS) P/E is around 18 if you assume the stock just MEETS analyst expectations for Q4.
(DPS) isn't being treated with a P/E that is even remotely fair..... DOES NOT MAKE SENSE!!!
How does a stock like DPS get a 14 P/E today?? 4 earnings beats in a row???
A: They will have their major bottling center in California open in March...
B: They will have finished the roll-out of Dr. Pepper Fountain Drinks at McDonalds by year's end
C: They released HyDrive Chew at stores last year...
D: They expanded last year the CRUSH branded beverage...
It's simple....
GLOBAL isn't some Investor GOD SEND... and anything that is NOT GLOBAL deserves to be punished and shunned.....
Global is meaningless compared to Product Quality.... and Quantity of Quality Products.
I contest... that my DPS stock has far more Quantity of Quality Products than HANS, KO, or PEP.
I also contest..... I also challenge to you NON DPS investors out there....this....
Isn't expansion of your company's beverage portfolio far more Growth Orientated than expansion of distribution of existing drinks?
By that I mean... would you rather see Coca-Cola providing the Coca Cola drink to one more Country they have not already done so...... Or would you want to see Coca-Cola produce another Smash Hit beverage product outside of the Soda Brands....Say a TEA or JUICE....that is instantly popular????
PRODUCT trumps mere Location Expansion any day.
Otherwise General Motors should never have gone Bankrupt.
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