- Coca-Cola possesses the most ubiquitous brand name in the world from years of textbook marketing prowess and an addicting flagship beverage.
- But the developed world is transitioning to water, juices, energy drinks, and other soft beverages as sugary soda becomes the new tobacco.
- Coke appears to be yielding to global trends by diversifying through acquisitions and branding partnerships, re-franchising its North American bottling operations, and focusing on organic growth and profitability.
- The Value Investing for Main Street Model Portfolio [VIMS] is long Coca-Cola at $29.83 a share for a cumulative 46% capital return, but maintains a "hold" position on the stock.
- Strong fundamentals countered by lofty valuations and high market risk dictate that Main Street investors consider holding or reducing positions as we patiently wait for more attractive entry/add points.
Welcome to the third installment of the Value Investing for Main Street series, exclusively on Seeking Alpha.