All of these stocks are rallying in the wake of a new year with questionable growth and a possible recession. The sodas that these companies create are premium brands. Meaning, that you have to shell out 2-3 dollars for one can or bottle. How does this make any sense? Why would someone want to invest cash in any of these companies given what we suspect of what will come next year? My opinion is that these are just short term momentum trades.
Credit conditions are at odds with fundamentals. Someday risk will be repriced, but no one has any idea what are when the catalyst will be. The HF, mutual fund managers are desperate to post any returns this year because they have underperformed and its hard to justify your fees when any index fund would have better at a fraction of the cost.
This is my thinking as well. Im seeing JSDA get bid up and then someone dumps a block on retail bidders at the higher levels. I think UBS is bidding it up on the island and then selling blocks at higher levels. Some retail investors will be left holding the bag come the new year.
Possible acquisition targets from KO or PEP....Read the KO article from tuesday....They are looking for more diversification in their soda offerings....No names were mentioned, but they all make sense....A much bigger drink maker that could rally with the group would be COT or FIZ.... OTC......JAVO and CCBEF different companies all together, but similiar price action last time these took off.....They all move with HANS for some reason... $COSTAverageMAN