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DZC CAPITAL WEEKLY INVESTMENT OUTLOOK (2.12.2019)

EQ FUND

COCA COLA CO (KO): BUY

Sector: Consumer Non-Cyclicals          Industry: Non-Alcoholic Beverages

The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company’s segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. The Company owns and markets a range of non-alcoholic sparkling beverage brands, including Coca-Cola, Diet Coke, Fanta and Sprite. The Company owns or licenses and markets over 500 non-alcoholic beverage brands. The Company markets, manufactures and sells beverage concentrates, which are referred to as beverage bases, and syrups, including fountain syrups, and finished sparkling and still beverages.

Trading Statistics

Market Capitalization: 228.792B

Shares Outstanding: 4.284B

Average Volume: 10.541M

KO DAILY CHART

Recommendation, why?

The beverage giant has been diversifying its offerings away from its namesake sugary soft drink and toward seltzers and energy drinks. Analysts are bullish on the company’s first-ever branded energy drink Coca-Cola Energy, which is set to launch in the U.S. next year. Coke is also getting rid of its Dasani sparkling water in favor of its new AHA brand also set to debut next year. It will also launch a new line of Smartwater still flavored water. Despite all those efforts, Coke earnings growth has been sluggish, with EPS falling 2% in the third quarter. Analysts expect Coke earnings to rise 7% in 2020, a decent performance.

ALIBABA GROUP HOLDING LIMITED (BABA): BUY

Sector: Technology     Industry: Internet Services

Alibaba Group Holding Limited is a holding company. Through its subsidiaries, the Company is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. Its businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives. Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com) and the wholesale marketplace for global trade (Alibaba.com)

Trading Statistics

Market Capitalization: 534.67B

Shares Outstanding: 20.696B

Average Volume: 19.689M

BABA DAILY CHART

Recommendations, why?
Apart from being one of the most held stock among hedge funds right now. BABA will be one of the stocks that will thrive this festive period with another record-breaking Black Friday sales throughout the world. We will watch closely this quarter.

DZC Capital Research Team

Author DZC Capital Research Team

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