Wednesday, 9 September 2015

Some more Barclays conference highlights: Coca-Cola and Kimberly-Clark

The last time I wrote about Coca-Cola (link here) I concluded that:

'Nevertheless the environment is not the easiest as shown below: 'full year comparable currency neutral growth expectations' even with ongoing cost cutting initiatives still makes me wait for the US$38 level'

Despite recent market wobbles the shares remain a little above this level and generally have had a pretty shabby-to-sideways last year: 

Of course Coca-Cola has been a great compounder over time and certainly is correctly a top ten global brand as I noted a few months ago when reviewing the BrandZ survey (link here).  Despite the product's omnipresence today's presentation by the company was interesting at three levels.  First they still see growth potential over the next five years...

...and of course (as I detailed at the first of my links) there is the company's ongoing turnaround plan on which there did not appear really any new details.  

(although I noted that @Barbariancap observed 
just said that they cannot reach their goals organically...)

In a brief presentation one slide that did strike me was the following one.  Perhaps not a huge surprise that emerging markets are volume led and developed markets are more pricing focused...but good for a company to actually come out and say it.  

Bottom line a worthy brand etc, etc but I am not feeling the need to get involved.  First flag a sub US$38 print (but I have to say there are plenty of other interesting stocks out there). 

Another stock I have written about multiple times is Kimberly-Clark where in my last write up I noted the importance to me of the US$101 level - a level which the share has not fallen to for nearly a year: 

So what were the key charts I noted from the Kimberly-Clark presentation at the Barclays conference today?  Well compared to the Q2 statement I reviewed back in July there were precious few extra disclosures.  Yes the company has performed well over time aided by its well known brands...

...and they edged up their FY15 forecasts back in July...

...aided by additional cost savings: 

Putting it all together - a bit like Coca-Cola - there was nothing in this presentation which would induce me to change my previous interesting price level.  

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