Coca-Cola Market Shrinks, Plans To Close Its Two Russian Juice Plants

Coca-Cola has four fruit juice plants in Russia out of which the company has decided to shut down two of the plants and have stated the reason behind this that its demand is continuously falling and due to such falling demand the company cannot put in risk hundreds of jobs. Coca-Cola had invested an amount of $276 billion in the fruit juice company four years back. The spokesman of Coca-Cola in Russia Vladimir Kravtsov has said in a statement that the company is going to close two of its fruit juice plants that is run by Nidan Unit of its, on 1^st June. He also stated that some of the capacity of that Unit which is going to be closed will be transferred to it’s another unit which know as Multon and this transfer will be done before the end of this year.

The spokesman Mr. Kravtsov further added that the plants, which are to be closed, are located in Moscow and Serbia region of Russia. He also told that about 1,000 staff workers of the units being closed would be offered jobs at the Multon unit. “The decision of closing the Nidan Unit was taken after the juice market fell by 5 percent the previous year but in case of Nidan it was going even more worse than the juice market. In the year 2010 Coca-Cola bought the Nidan company and then the also the fourth biggest juice making company of Russia.

In 2005 Coca-Cola bought Multon, it has two plants in Russia and both the plants are making combined production of more than 790 million liters of Juice every year. The Russian market researchers Neilson have stated that from January to September 2013 the Russian Juice market has fallen by 6 percent year-on-year in terms of volume. Due to the falling of Juice market in Russia, PepsiCo the rival of Coca-Cola and Coca-Cola itself has faced much competition from the local Russian brands.

According to Euro monitor data the stock shares of Coca-Cola was 23.5 percent in the Russian Juice market, which estimated $4.6 billion in 2013 while all the other local brands increased their market shares the previous year. One of the main reasons behind the shutdown of Juice plant is the slowing down of Russia’s economy as it has started to shrink because of the involvement of the country in Ukraine crisis.

Coca-Cola is however, still one of the world’s most leading companies whose stock price of today can be seen varying from $40.71 to $40.95. Besides Coca-Cola the company is also operating in many other drinks like non-alcoholic beverage concentrator and syrups but it is mostly known in the world by its flagship product Coca-Cola. It is a multinational American beverage corporation; manufacturer, retailer and marketer of the above mentioned drinks and is headquartered in Atlanta, Georgia. Stock symbol of Coca-Cola is KO and it trades under NYSE. The revenue generated by Coca-Cola last year was $46.854 billion. Its operating income, net income, total assets and total equity are $10.228 billion, $8.584 billion, $90.055 billion and $33.44 billion respectively.

If we go through the history of Coca-Cola we may come across that fact that it is among the oldest companies of the world as John Stith Pemberton who was a pharmacist invented it in 1886. The company was build up in Columbus, Georgia. The incorporator of Coca-Cola Company Asa Griggs Candler introduced the brand and formula of Coca-Cola. The company also owns an anchor bottler in North America. The current CEO and chairman of Coca-Cola is Muhtar Kent.

Outlook for CAT seems Bearish.

Caterpillar (CAT) news recently came in when it announced that it is going to sustain the cash dividend for the current quarter. The dividend per share of CAT is $60 cents per share of common stock. The company declared that it generated a record cash flow in FY13 making its balance sheet reflect the best fundamentals since 25 years. The company also repurchased a total of $1.7 billion worth of shares making it the largest quarterly share buyback program they have ever had.

Revenues for CAT for 4QFY13 were $14.4 billion, which were down from the year ago quarter by 10.4%. However, Net operating expense in the same period was $2.4 billion declining by 23% from the year ago quarter. This contributed majorly in a high net income for the period. Net income for current quarter was almost $1 billion which was 44% more in value from the same quarter last year.

Due to higher Net income, Earnings per share for 4QFY13 were $1.57 which were 46.7% more in value from the year ago quarter. Net cash flow from operations were $2.5 billion in 4QFY13 which were up by 30% from the year ago quarter.

Net free cash flows (Net income minus capex) in 4QFY13 also appreciated by 202% in value from the year ago quarter. However their Capex in the same period declined by 17%.

CAT stocks have increased by 13.24% in value since the start of 2014 and analysts expect it to reach a consensus estimate of $98 in the coming 12 months and give the stock a hold rating.

During the recent Russia-Ukraine conflict, there were a lot of political tensions in the region. This can be a big worrying sign for CAT if Russia decides to retaliate against US sanctions. CAT has invested over $1 billion in the region since year 2000, and if Russia retaliates, it could stop trade between the two countries which is worth more than $38.2 billion. Sectors like Mining, manufacturing and banking will be largely affected from this event.

Furthermore, CAT lost the contract with Siemens (SI) and Cummins (SMI) that would have earned CAT $226 million. It also lost the contract in Illinois where they were required to manufacture locomotives for high speed trains.

Considering all these factors, outlook for CAT seems bearish. CAT stock quote as on 18^th April 2014 was $102.83 down 0.10% from previous day’s closing price of $102.93. CAT stock graph has shown an upward trend this year since it has increased 13% in value year to date. But moving forward, CAT growth prospects are not as expected due to which their Revenues will remain flat as for the next year. Their stock price is expected to shed value for the same reason. CAT’s beta is 1.81 which is relatively high and shows that it is an aggressive stock and is much exposed to external and macroeconomic factors.

CAT is trading at a premium of 15% from the broader market but given its growth prospects and factors explained above, it is an overvalued stock and investors should take a short position given the risk associated with it. 

Chevron Corp. Stock Getting Very Oversold

Chevron Corp. (NYSE: CVX) is the second greatest power company in the US, simply slipping behind Exxon-Mobil and regarded among the six Superb or Large Acrylic businesses in the globe. It runs in more than 180 states, having confirmed and utilizing a powerful community of retail filling channels, such as big trade names including Chevron Corp, Texaco and Caltex. Chevron company integration is a vertical one, having its businesses diversifying from making petro-chemical merchandises as nicely making petroleum to exploration.

Chevron comes under really tough environment laws, having confronted an impending lawsuit on it and quite costly litigations on environment safety as a result of taint of the Ecuadorian Amazon rain-forest, where the litigants have produced a state of over $24 billion. Nigeria's governmental uncertainty has additionally produced problems to Chevron, which will be a well substantial petroleum move in Africa.

In the current week, the Chevron Corp inventory is easily grouped in to one that is over-sold trading only $111.25 per-share. An over-sold standing utilizing the resource software, Comparative Power List, to quantify the impetus on A0 to 100 level is defined by a specialized expert. An inventory may be called over-sold, if the resource software drops below 30, and also in the instance of CVX stock Investigation, it has recently reach 28.1, which by comparing to additional in the power inventory is reduced, the others calculating only above 50. Buyer always has the choice to suppose the tendency is one that can deplete itself shortly, but the experts view the substantial marketing as one that can carry on for a number of weeks, unless the Chevron shares reveal a good monetary signal including a growth in gross sales, resumption of Gulf procedures, or some stretch in the borders of energy merchandises.

Aetna and the fundamental points one should know, when investing.

Stock is a security that provides the holder the right on the assets and earning of the organization. Investing can be an easy and secure way of generating consistent and growing income. By gaining knowledge of the market trends and strong knowledge of stocks which are going to raise in the future, huge profits can be generated. There are many examples of people who have gained huge profits through investing in stocks. Investing in stock can diversify the source of income and also creates a separate and secure income. The rate of growth in stock income is far greater than the rate of interest paid by the banks. So rather than putting the excess money in the bank, investing in stock can be more favorable.

But before investing in stock a complete screening of the best available stock should be made. While investing in stocks first we need to assume the risk for investing in the organization shares. Everyone wants to be secure about the future, especially now people have become more aware about the health concerns. So health related insurance has gained pace in last few years. Health insurance sector is bound to prosper in the times to come. So, the profits generated

Aetna Inc. founded in 1853 is working as a health care benefits providing company in Harford England. It works in three major sections: Health care, Group insurance and Large case pensions.

The health care segment provides benefits regarding maintenance of physical and mental health. This segment also provides medical care and products required for health care. Group insurance segment deals in providing large number of insurance to a group, a company or medium size enterprises as well as individuals. The large case pension section is to provide after job/ retirement benefits to the employees and workers. The customers of this section include employer groups, college students and workers.

Aetna with its 22.719 medical members, 616000 doctors and specialist and more than5400 hospitals stands out as one of the very best in its class and no doubt it is providing best services. The aforementioned fact being the beneficiary as far as Aetna stock’s worth is concerned.

With market capita 26.58 Billion, enterprise value of 31.49 Billion Aetnastock is on its way to the excellence that it has always insured. But company not just only contains profit to its self but also divides it to its stakeholders too and most importantly to potential Aetna stock holders as the dividend yield for the last five year for the company shareholders is 0.90 % and earning per share for the fiscal year 5.33.

Aetna has earnings growth 10.81 % for last year, 10.82% for this year and estimated and evaluated growth rate of 11% for the next five years. The stock rate for the company today is 74.36 $ (16-05-2014) and is estimated to rise up till 100 $.  

Moreover, Aetna has had its issue with Obama Care, causing its stock price to plummet for a moment in time, however with the recent crash of the healthcare.gov website, people started to doubt the credentials of Obama Care and have quickly turned towards Aetna, an issue all potential Aetna stock shareholders must keep in consideration.

Can American Express Double Again?

Charge card companies continue rising. After American Express (AMEX Stock Symbol) provided strong fourth-quarter results a week ago, shares of the business rose 4% and Visa Inc. (V), raised by American Express' outcomes, got 5%. Credit will record later on this month, but traders undoubtedly anticipate great effects from your business at the same time. Traders of American Express, Visa, and MasterCard are seeking straight back at a fantastic year and all of them have significantly out-performed the Standard and Poor's Index.

The breakout of an extensive trading variety occurred at the starting of 2012. In all justice, the starting point of the dimension interval leads to some favorable operation image because the following financial catastrophe triggered quite despondent collateral values in the first-quarter of 2009. Whatever the case, the recovery in card firms has been rather strong and American Express has doubled several occasions since then. This will cause investors to check out American Express stock.

American Express had a powerful fourth quarter and Fiscal-Year 2013 outcomes that send-up share of charge at the same time. American Express noted complete profits (net of interest cost) of $8.5 billion vs. $8.1 billion a year-ago (plus 5%). Fourth-quarter net gain grew up to $1.3 billion compared to $637 million a year-ago (an increase of 104%), and American Express' diluted EPS soared from $0.56 in the fourth-quarter of last year to $1.21 in the many current quarter (up 116%). Fourth-quarter charged company rose 8% to $254 billion from $236 billion a year-ago suggesting that individuals are more easily utilizing their charge cards. Progress prices in American Express' charged company required a winner in 2012 when economical doubt reemerged amid concerns that China's market is overheating. Development prices have regained during 2013 and I anticipate a charged company team progress price above 12% in 2014. Allowing American Express Stocks to increase.

Within the last three years American Express has used considerable amounts of running money flow to repay debt. Also, American Express has significantly stepped-up its share repurchases over the last two years (internet reveal repurchases stood at $1.7 million in fiscal year 2011 and $3.5 million in fiscal year 2012). According to American Express' eight-month 2013 amounts and an uptick in operation impetus, I calculate that American Express may outshine its 2011 managing cash flow in both Fiscal-Year 2013 and 2014. With adjustments in internet credit related to historic ranges, I calculate that American Express can attain a strong rebound in free money flow to collateral and reach $5.4 million in FCFE in fiscal year 2014. This means a free cash flow to collateral per-share of $5.03 and an increased P/FCFE percentage of around eighteen.

While the free funds flow percentage is just not reduced rather than always a deal, it does rightly indicate preceding-typical increase expectancies for American Express. I maintain a favorable perspective on the US economy and believe that the US market and US companies are great for a number of optimistic shocks in the next couple of years. Lower joblessness prices and rising rates of interest may help card organizations like American Express and warrant a superior value. American Express has major possible to improve its EPS over another growth period that the marketplace can prize with several growths. You can observe a huge change in American Express stock quote. Be sure to check American Express stock news from time to time on Bidnessetc.com.