Banananomics: A Promising Tale Of Two Soaring Coke Stocks

A Promising Tale Of Two Soaring Coke Stocks

McDonald's is removing free drink refills, but Coca-Cola seems fine.

Inputs that matter: The Coca-Cola Company (NYSE: KO) stock is still moving upward regardless of the news.

• However, there are two Coca-Cola stocks, one from the NYSE and the bottling company on NASDAQ.

• Coca-Cola Consolidated (NASDAQ: COKE) is the largest single Coca-Cola bottler in the world, operating in 14 states and Washington, DC, to service over 60 million customers. 

• Coca-Cola Consolidated remains firmly under the control of the Harrison family, with J.B. Harrison III, great-grandson of its founder, serving as the current CEO and Chairman. 

• Harrison controls 86% of the voting stock shares, and The Coca-Cola Company currently owns roughly 35% of the common shares.

The opportunity: Swiss National Bank trimmed its position in Coca-Cola Consolidated, Inc. (NASDAQ: COKE) by 10.8% in the fourth quarter of 2023.

• First Command Advisory Services Inc. purchased a $38,000 new stake in Coca-Cola Consolidated during the third quarter.

• CWM LLC raised its position in Coca-Cola Consolidated by 22.2% in the 4th quarter.

• Fifth Third Bancorp boosted its stake in shares of Coca-Cola Consolidated by 163.0% in the 3rd quarter.

• Sunbelt Securities Inc. grew its position in shares of Coca-Cola Consolidated by 100.0% during the third quarter.

Zoom in: A number of consumer products emblematic of US culture have become universally recognized and regarded around the globe: Harley Davidson motorcycles, Marlboro cigarettes, Levi denim jeans, McDonald's hamburgers, and Coca-Cola soft drinks.

• McDonald's customers are bidding a bitter farewell to free drink refills, one of the brand's latest casualties.

• "McDonald's tends to be a leader in the industry. And often, other restaurants follow suit when they make big changes. McDonald's is brilliant about their costs," said Darren Tristano, CEO of consulting firm FoodserviceResults.

Between the lines: Coca-Cola and its other beverages are now sold in over 200 countries with an estimated 1.8 billion daily servings.

• Aside from North Korea, Cuba, and Russia, Coca-Cola operates in every other country.

• This allows Coke to generate predictable operating cash flow in developed markets while benefiting from more robust organic growth opportunities in emerging countries. 

• The company has 26 brands generating at least $1 billion worldwide sales.

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Unusual Report Of DNA Sales From Floundering 23andMe

DNA-testing firm 23andMe Holding Co. has been granted an additional 180 days to move its shares above $1 to avoid being delisted.

Inputs that matter: The stock has traded below the $1 Nasdaq minimum since late last year, with the clock ticking to regain compliance. It will now have until Nov. 4.

• U.S. Representative Jason Crow warns that bio-weapons are being made that use a target's DNA only to kill that person.

• The Congressman said the devilment of the weapons is problematic given the popularity of DNA testing services like 23andMe.

• In 2019, it was found that Russian and Chinese labs were processing DNA tests for Americans through Medicare and Medicaid.

The opportunity: 23andMe agreed to go public in 2021 through a merger with a special-purpose acquisition company founded by billionaire Virgin Group founder Richard Branson.

• It was valued at $3.5 billion at the time. In just a few years, the stock has lost more than 90% of its value as the consumer DNA testing revolution the company sought has been slow to catch on.

• Last month, CEO Anne Wojcicki said she was considering taking the company private, telling board members she is proposing to acquire the company, according to a filing.

Zoom in: Earlier this year, 23andMe was accused in a class-action lawsuit of failing to protect the privacy of customers whose personal information was exposed in a data breach that affected nearly seven million profiles last year.

• The lawsuit, which was filed in federal court in San Francisco, also accused the company of failing to notify customers with Chinese and Ashkenazi Jewish heritage that they appeared to have been specifically targeted.

• The suit was filed after 23andMe submitted a notification to the California Attorney General's Office that showed the company was hacked over five months, from late April 2023 through September 2023.

• The company first disclosed the breach in a blog post on Oct. 6 in which it said that a "threat actor" had gained access to "certain accounts" by using "recycled login credentials."

Between the lines: Stolen DNA, if manipulated, can be used to create biological weapons since hackers can sell the data for gene editing, which is the process of making specific changes to DNA to develop deadly bacteria and virus strains. 

• These diseases and other genetically modified toxins can spread and infiltrate food production, water supply, and other systems that rely on biotechnology.

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