Jump to content

Coca-Cola kicks off $5.1 billion Costa deal


Recommended Posts

  • trade247 changed the title to Coca-Cola kicks off $5.1 billion Costa deal

this is interesting. WHitbread had stated earlier in the year they were planning to separate the business. There was talk about floating it asits own business as it was undervalued.

 

I watched WTB at open and it *appeared* as though the shares could briefly be bought around the £40 mark. Which I was scratching my head wondering why there was no premium added to the share price at open. I nearly took at opening position. The shares are trading around £48 now so I am kicking myself for not seeing if I could have bought at the pre marked up price. anyway, it was puzzling.


For me this has wider implications about the state of the overall market. That namely being a) there are large deals being done where inherent value is not recognised in a stock's price. b) it gives us an indication perhaps of the attitude of large US suitors who can take advantage of a relative weakness in Sterling vs USD to make deals more affordable. c) it tells how companies are using their cash reserves and broadening their bases.

These factors give me encouragement for a share I continue to hold and have written about at length on the forums. I see the effect of Trump-onomics (i made that up, btw) and especially legislation changes and the currency situation making it favourable that a US suitor will pick up WMH at some point (or at least bid for it) I don't want to hijack this thread and discuss WMH though.

Same could be said of a number of other UK equities. I know one poster here has called FEVR short on valuation grounds. I agree with their rationale but look what happens when a bid comes out of the blue. Being short can be dangerous in such situations so is one thing to bear in mind.

Anyway, talking of takeovers, I am mulling over heading to RBG for a spot of lunch and research to see how a the London sites are faring. This had a bid of 203p last year and is now down to around 118p following the rejection of the offer. Where there's smoke there's usually fire etc.

As a closing point it is worth considering (certainly with any collapse or shock in the market) adding stocks like KO (Coca Cola) to a portfolio. It has had a remarkable history and although it divides opinion one thing is clear: the company is here to stay, despite sugar taxes and what-have-you, it is now diversifying into Coffee Chains so is certainly one to buy, in my opinion, if the market sees any correction. These are the sort of buy and hold/pension-type stocks.

gbpusd.thumb.jpeg.fd8acda49804980d73f25c1bb3ed6c76.jpeg

  • Like 1
Link to comment
  • Costa Coffee, far and away the biggest coffee chain in the UK, has 4000 stores in 32 countries
  • Founded in London, it has a growing presence in China, and strong positions in Europe, Asia and the Middle East
  • The move follows PepsiCo’s purchase of seltzer-machine maker Sodastream for $3.2bn earlier this month

 

Edited by TimP
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      20,702
    • Total Posts
      89,599
    • Total Members
      40,564
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Doug
    Joined 28/11/22 07:17
  • Posts

    • Nov 28, 2022 | DailyFX Nick Cawley, Senior Strategist GBP/USD - PRICES, CHARTS, AND ANALYSIS US inflation and jobs data are released at the back end of the week. The 200-day moving average is the next target for cable. The US dollar has given back all its early gains and is now trading in negative territory in early European turnover. The greenback rallied in Asian trade as Chinese covid-zero protests spread, but the strength of the Euro and the Japanese Yen has pushed the dollar index lower and near lows last seen around 10 weeks ago. US DOLLAR (DXY) – DAILY CHART       GBP/USD DAILY PRICE CHART – NOVEMBER 28, 2022   All Charts via TradingView
    • Charting the Markets: 28 November FTSE 100, DAX and S&P 500 drop back in early trading. Dollar weakness drives losses for USD/JPY, and boosts EUR/USD and GBP/USD. And gold, Brent crude and natural gas at risk on Chinese concerns.   This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
    • Dollar weakness drives losses for USD/JPY and boosts EUR/USD and GBP/USD Quiet trading on Monday has seen further USD weakness, allowing the euro, sterling and yen to make headway against the greenback.    Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 28 November 2022  EUR/USD recovery continues EUR/USD continues to claw its way higher, pushing back above the 200-day simple moving average (SMA) in early trading. The rally from the September-low has yet to show signs of reversing, and with the move above the 200-day we may see additional momentum should the price be able to push on above $1.05. Additional gains target $1.063, last seen in May and June. A reversal below $1.02 would be needed to suggest that the price has once again reverted to the downtrend of the past year. Source: ProRealTime GBP/USD targets continued rebound A move higher in early trading has seen GBP/USD push back towards the 200-day SMA. Like EUR/USD, the pair remains in a move higher, one that has put the 2022 downtrend on ice for the time being. Additional gains target $1.225 and then $1.266. It would need a move back below $1.165 and the 100-day SMA to suggest that the sellers have reasserted control on a longer-term basis. Source: ProRealTime USD/JPY drops further towards 200-day MA The breakdown in the uptrend continues here for USD/JPY, as the price pushes below ¥138.00 once again. A move back to the (still rising) 200-day SMA seems likely, marking the first time the pair has hit this indicator since February 2021. This would still be a higher low if the pair succeeds in bouncing from there. A mid-month recovery faltered at ¥142.00, and so it would need a move back above here to suggest that a low is in for the pair from current levels. Source: ProRealTime  
×
×
  • Create New...