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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.

Wednesday, August 19, 2009

Coca-Cola 'Freestyles' A Smarter Soda Machine

The Coca-Cola Company has launched a Twitter and Facebook page to bring awareness to a new soft drink dispenser that relies on radio frequency identification (RFID) technology. It has begun to test in the southern California market at a variety of restaurants, such as Carl's Jr., El Pollo Loco, Jack in the Box, and Subway. The smart-machine collects extremely detailed information about drink choices (the dispenser can mix up to 100 different soft drinks) and continually relays it to the company -- the Terminator of vending machines.

The Facebook fan page has more than 1,000 members since the launch at the end of July. Social media will drive traffic to participating outlets.

Coca-Cola Freestyle, the brand name for the fountain dispenser, dispenses more than 100 beverage brands from one unit. While it took more than four years to plan, the platform's design taps RFID technology from Seattle, Wash.-based Impinj.

Monza tag chips and Indy reader chips provide the core RFID capability for the system. It uses RFID to monitor, track and maintain dispenser operations as well as to provide real-time business analytics about product consumption and preferences.

There are 15 dispensers on the market. The network will include 75 by the end of September. Each unit will connect to the Internet and talk back and forth to the main system.

Coke Smart, will let customers who use the machine in their store order from an e-commerce site on the Internet. Coca-Cola also can download new recipes direct to the machine.

Freestyle will let Coca-Cola test new drink flavors, such as adding various vitamin combinations to flavored waters and juices. The dispensers contain 30 flavor cartridges tagged with RFID that mix up 100 different drink combinations. Each dispenser unit contains an RFID reader. The dispensers collect data on customer choice. The systems will collect data on sales, which in turn will give marketers information on where to best market specific products.


Thursday, August 13, 2009

Coca Cola's Bioplastic PlantBottle Coming Later this Year

The Coca-Cola Company recently took the first steps to eventually introduce bottles made with materials that are 100 percent recyclable and renewable. Company's new PlantBottle is due sometime later this year in select markets holding their Dasani brand bottled water and sparking brands.

Coke's Vitaminwater is expected to follow - being packaged in
the PlantBottle sometime next year. The PlantBottle is currently made through an innovative process that turns sugar cane and molasses, a by-product of sugar production, into a key component for PET plastic. Manufacturing the new plastic bottle is more environmentally efficient as well. A life-cycle analysis conducted by Imperial College London indicates the PlantBottle with 30 percent plant-based material reduces carbon emissions by up to 25 percent, compared with petroleum-based PET. According to the company, another advantage to the PlantBottle is that, unlike other plant-based plastics, it can be processed through existing manufacturing and recycling facilities without contaminating traditional PET.

Consumers can identify the innovative bottles through on-package messages and in-store point of sale displays. Web-based communications will also highlight the bottles' environmental benefits.

Coca Cola faces a challenge with its new bottle concept from the recycling industry who have long been concerned about contamination from bio and other types of plastics. Industry groups are concerned the current recycling system in the US is not equipped to adequately handle bio plastics.

Tuesday, August 11, 2009

Was Warren Buffett buying stocks during the second quarter?


Later this week we'll find out whether Warren Buffett was buying stocks for Berkshire Hathaway during the second quarter as U.S. markets rallied.

Berkshire is likely to file its quarterly Form 13F with the SEC late this week, probably after the market closes Friday afternoon. The form, which is required of many institutional investors, will reveal Berkshire's stock holdings as of June 30. Berkshire's last 13F showed the firm's stock holdings as of March 31.

We already know from Berkshire's second-quarter earnings release Friday that the company sold part of its position in ConocoPhillips during the second quarter and continued selling in July. Berkshire also sold some of its stake in Moody's Corp. during the third quarter.

An analysis of the Form 10-Q filed Friday also indicates that Berkshire bought additional shares of Johnson & Johnson and Wells Fargo during the second quarter, as this report also notes.

We'll have the results of Berkshire's Form 13F filing shortly after it's made public this week.

Monday, August 10, 2009

Berkshire Hathaway Bought More Johnson & Johnson and Wells Fargo Company, Sold ConocoPhllips, Held on American Express Company, The Coca-Cola Company

The much anticipated 2Q09 Berkshire Hathaway earning report was release last night. It is “Solid Result in Difficult Times”. This Blog readers would be anxious to know what stock Warren Buffett bought for Berkshire Hathaway for the quarter. We can determine that he bought some more shares of Johnson & Johnson and Wells Fargo, sold more shares of ConocoPhllips, but kept steady on American Express Company, The Coca-Cola Company, Kraft Food, Procter & Gamble.

1. Johnson & Johnson (JNJ)
Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional. Johnson & Johnson has a market cap of $165.06 billion; its shares were traded at around $59.9 with a P/E ratio of 13.3 and P/S ratio of 2.6. The dividend yield of Johnson & Johnson stocks is 3.2%. Johnson & Johnson had an annual average earning growth of 12.5% over the past 10 years. Berkshire owned 32.5 million shares as of 1Q09 and 38.3 million shares as of 2Q09, so it may have bought 5.8 million shares.

2. Wells Fargo & Company (WFC)
Wells Fargo & Company is a diversified financial services company providing banking insurance investments mortgage and consumer finance services through stores its Internet site and other distribution channels across North America as well as internationally. Wells Fargo & Company has a market cap of $135.31 billion; its shares were traded at around $28.76 with a P/E ratio of 32.2 and P/S ratio of 2.6. The dividend yield of Wells Fargo & Company stocks is 0.8%. Wells Fargo & Company had an annual average earning growth of 10.8% over the past 10 years. Berkshire owned 302.6 million shares as of 1Q09 and 316.8 million shares as of 2Q09, so it may have bought 14.2 million shares.

3. ConocoPhillips (COP)
ConocoPhillips is a major international integrated energy company with operations in some 49 countries. ConocoPhillips has a market cap of $65.29 billion; its shares were traded at around $44.07 with a P/E ratio of 7.3 and P/S ratio of 0.3. The dividend yield of ConocoPhillips stocks is 4.2%. ConocoPhillips had an annual average earning growth of 19% over the past 10 years.
Berkshire owned 71.2 million shares as of 1Q09 and 64.5 million shares as of 2Q09, so it may have sold 6.7 million shares.

Other Top Holdings
The 10-Q Listed the other four top holding positions: American Express, CoCa-Cola, Kraft Foods, and Procter & Gamble. It appears he has held those positions steady.

American Express Company is primarily engaged in international credit card and banking services throughout the world. American Express Company has a market cap of $38.17 billion; its shares were traded at around $32.69 with a P/E ratio of 24 and P/S ratio of 1.4. The dividend yield of American Express Company stocks is 2.2%. American Express Company had an annual average earning growth of 1.3% over the past 10 years.
Berkshire holds 151.6 million shares.

The Coca-Cola Company is the world's largest beverage company and is the leading producer and marketer of soft drinks. The CocaCola Company has a market cap of $114.22 billion; its shares were traded at around $49.34 with a P/E ratio of 16.3 and P/S ratio of 3.6. The dividend yield of The CocaCola Company stocks is 3.3%. The CocaCola Company had an annual average earning growth of 5.3% over the past 10 years.
Berkshire Hathaway has 200 million shares.

Kraft Foods Inc. is the largest branded food and beverage company headquartered in the U.S. and the second largest in the world. Kraft Foods Inc. has a market cap of $42.27 billion; its shares were traded at around $28.7 with a P/E ratio of 15.1 and P/S ratio of 1. The dividend yield of Kraft Foods Inc. stocks is 4.1%. Berkshire owns over 130 million shares of KFT.

The Procter & Gamble Company manufactures and markets a broad range of consumer products in many countries throughout the world. The Procter & Gamble Company has a market cap of $151.65 billion; its shares were traded at around $52.03 with a P/E ratio of 14.5 and P/S ratio of 1.7. The dividend yield of The Procter & Gamble Company stocks is 3.5%. The Procter & Gamble Company had an annual average earning growth of 10.8% over the past 10 years. Berkshire owns over 90 million shares of PG.