Coca-Cola (KO) - A Report Brought to You by Q8 Trade
An overview of the Coca-Cola company and its investment importance
Coca-Cola International is an American multinational company, and is one of the largest companies specialized in the manufacture, packaging and marketing of non-alcoholic soft drinks. The company owns one of the largest distribution companies in the world where its products are sold in about 200 countries and territories, and its products employ more than 1.7 billion people daily.
In 1886, the beginning of Coca-Cola was when chemist John Steth Pemberton invented the Coca-Cola drink by making a mixture marketed as a remedy for headaches: sugar, water, cola nuts, and cola leaves. in 1889 he waza Candler purchased the special composition of a drink of Coca – Cola for US $ 2,300, then Coca – Cola company was founded in 1892 and is headquartered in the United States of America in Atlanta, Georgia, it was sold to Coca – Cola for the first time by tanks drink at a price of 5 cents The cup, in 1916 was put your logo on Bkokakoula bottles to avoid imitating the original drink, and the company ‘s chairman and chief executive officer is the current Muhtar Kent.
Coca-Cola distributes more than 3 percent of all beverages consumed during the day, and therefore has the largest beverage distribution system in the world.
The company employs 61.8 thousand employees in 2017, only 20 percent of the company’s total workforce is American.
In November this year, Coca-Cola achieved a market value of $ 212.74 billion.
In 1919, Coca-Cola shares first went public for $ 40 per share and Coca-Cola shares are traded on the New York Stock Exchange.
Coca-Cola is trading under the symbol KO, trading from Monday to Friday from 14:30 to 20:59 London time.
History of the Coca-Cola company
In 1919, the Coca-Cola IPO began, when a consortium bought the company for $ 25 million.
In 1920, the group re-established the company, and offered to sell its shares for sale on the New York Stock Exchange.
Initially ordinary shares were offered at $ 40 per share, and preference shares were sold at $ 100 per share.
The company initially used the CCO index for trading, and in 1932 it was changed to the KO index.
Since the beginning of 1969, the company has paid its shareholders’ profits, which rise year on year
In 1987, Coca-Cola shares were once again added to the list of 30 stocks that make up the Dow Jones Industrial Average, an index often referred to by analysts studying stock market performance.
In 1988 Buffett, Berkshire Hathaway bought shares in Coca-Cola.
In 2016, according to the company’s annual report, Coca-Cola shares rallied as the company’s market capitalization reached nearly $ 180 billion, in addition to 53 consecutive increases in earnings.
In November 2018, Coca-Cola shares traded at $ 49.02 per share.
How is the Coca-Cola share price determined?
Coca-Cola World is one of the largest beverage companies in the world.
In order to calculate Coca-Cola’s share price, you need to keep a close eye on the market, especially the company’s annual earnings reports, and try to keep up with the economic news.
Looking at Coca-Cola’s revenues and sales which show the demand for the company’s products, we find:
In 2005, Coca-Cola sold its products in more than 200 countries worldwide. the world.
In 2007, according to the company’s annual report, sales were distributed as follows: 43 percent in the USA, 37 percent in Mexico, Brazil, Japan, India, Pakistan, China, and the remaining 20 percent distributed in the rest of the world.
In 2010, Coca-Cola announced it was the first brand to exceed £ 1 billion in annual sales in the United States.
Is trading Coca-Cola shares profitable?
Investing in Coca-Cola is not just buying shares that can be traded after a certain period.
The first American soft drink company grew in the first quarter of this year, and the company’s net income reached about $ 1.68 in the first three months of 2019, compared to the same time last year, which was $ 1.33 billion.
Coca-Cola’s net revenue grew 5 percent to $ 8.02 billion in the first quarter of 2019.
It also posted a 4 percent growth in its second-quarter results in sales of its core Coca-Cola product and the same sugar-free drink, contributing to a 6.1 percent increase in net revenues to $ 10 billion.
Coca-Cola reported a net profit of US $ 3.1 billion in the second quarter of 2019, compared to $ 2.6 billion in the same period in 2018.
Net profit increased to $ 1.44 billion in the third quarter of this year from $ 1.04 billion in the corresponding period of 2016.
Earnings per share were $ 0.33 from 2017, compared to $ 0.24 in the corresponding period of 2018.
The company raised its forecast for revenue from existing operations for the full year, due to increased sales of sugar-free soda and soft drinks.
The Atlanta-based Coca-Cola also expects existing operating revenue to grow 5 percent for the whole of 2019, up 4 percent from previous estimates.
Factors affecting the price of Coca-Cola
There are a number of factors that affect the rise and fall of Coca-Cola’s share price:
Demand for products
If the demand for Coca-Cola products increases, this will lead to the rise of its shares, as the stock markets are already affected by the real markets of companies, profits, and sales.
Volatile emerging markets
Despite the many advantages of emerging markets in the possibility of making significant profits, they may have a negative impact on the financial performance of the company.
Political and economic conflicts in a number of countries worldwide have an impact on the company and reassess its strategies.
Inflation results in an increase in production costs, which means that Coca-Cola will face the problem of rising prices.
If the company tries to raise the price of its products, it is very risky to reduce the number of users of its products because they are unable to buy the company’s products. Rise in its share price.
Coca-Cola is the fifth largest brand in the world, starting in November 2018.
Today, however, the brand is not as strong as before, so Coca-Cola will need to find new ways to attract millennials to its products on a large scale.
Trading shares through CFDs
Trading CFDs has a growing position in recent years. In the case of CFD trading, you are not buying the stock in real terms, you enter into a contract with another broker and the price difference between the opening and closing is the profit ratio.
With CFDs you can take advantage of price movements even if the market is in decline, you are not buying the underlying assets, and this helps you open positions with large sums.
How CFDs work
- A trader selects an asset from a stock, currency or index that the broker puts to trade as CFDs.
- The trader opens a position and determines the process to be carried out, whether buying or selling, the amount of investment in it, leverage .. And other criteria, which vary depending on the broker.
- The trader will actually enter into a contract with the broker and will approve the opening price of the deal and see the additional fees, if any.
- The position is opened and not closed to the trader himself and decides to close it, or the trader determines the automatic closing of the transaction, such as a loss or profit order, or in the event of the expiration of the contract period.
- If the position is closed on profit, the broker pays the trader, but if the deal is closed on the loss, the broker charges the trader a difference.
What you should know when trading Coca-Cola stocks
The company’s annual and quarterly earnings data give an idea of the future trends of stocks and the times that are appropriate for both the buying and selling of shares.
From the point of view of some analysts, the company has reached its maximum growth, at least in the geographical sector, and now the company is focusing on the development of new products and open up its modern markets.
In 2014, the Coca-Cola Company announced a deal with Keurig Green Coffee Maker, a partnership that helps spur growth in a modern market for several years.
Experts believe the time is right to buy shares in Coca-Cola, although the company’s recent performance has been disappointing as experts expect prices to rise based on growth expectations.
The company’s brand and its commitment to continuous product development makes Coca-Cola competitive for a long time.This position makes the company always in challenges and competition in the soft drink market, yet it has proven its adaptability and resistance to these challenges.
Advantages of CFD trading
Leverage: One of the most important advantages of trading CFDs, where using a small amount can open trades of a large size compared to owning the asset being traded.
Example: If the price of a particular share is $ 100, you can invest in this stock for only $ 50, and using a leverage 1:10 you can trade on the same stock for $ 500, in this way you can open trades greater than the value of your balance leverage.
The possibility of profit from the decline: If the market moves up or down you can benefit, there are no restrictions at the beginning of the process of buying or selling, in the case if you make the first sale and expect prices to fall this is called “short sale” In this case you can buy Beyond the low price and gain.
Trading a wide range of markets: Most CFD brokers offer the possibility of trading on different assets in a wide range of financial markets worldwide through online trading platforms. This diversity of investment instruments (stocks, indices, currency, commodities…) CFDs are a large sector for many investment opportunities for all traders.
No government fees: In case of purchase or sale in CFDs, this does not require any taxes to be paid such as authentication or stamp duty. This is because the trader does not have the actual assets for what he trades. Taxes obtained from such trading may be subject to taxation, but this shall be provided provided that it reaches a minimum threshold determined by the law of the State of residence.
24/7 trading: CFD trading is available 24 hours a day, five days a week from Monday to Friday. This makes the investor free to trade at any time, whether he is a full-time trader or a worker, unlike traditional markets, The CFD trader can continue trading even if the major markets are closed.
In the end, the trader must have sufficient knowledge and information on how financial derivatives work such as CFDs and the size of the potential gains and losses from trading, so that he can know that this type of investment is appropriate for him or not.
Why trade in Coca-Cola share CFDs with Q8 Trade?
- Kuwait Trade Q8 Trade provides leverage to increase the value of your trading capital.
- When you trade with “Kuwait Trade” Q8 Trade offers you the opportunity to trade Coca-Cola shares through CFDs, as this ensures that you get gains even if there is a decline in prices.
- Kuwait Trade Q8 Trade offers the possibility of trading during the trading of Coca-Cola shares without any fees or stamp, through CFDs, due to the reason that you do not actually own the stock.
- Kuwait Trade Q8 Trade on its website provides many tools that can benefit from the time of trading Coca-Cola shares such as: prices, real-time, historical charts, everything related to the Coca-Cola share of news and that can be a reason to affect its performance, fees Live charts, fundamental technical analysis and others.