Buy and trade Coca Cola shares
Some stock exchange shares seduce traders through the popularity of the company which emits them, as is the case for Coca Cola shares.
But what are these shares really worth and how can you trade them using CFDs on a trading platform?
These are some of many questions which we will review here with some advice and information on the Coca Cola company.
Brief history of the Coca Cola company
The Coca Cola company was created at the end of the 19th Century and in the beginning was marketed as a medicine in the form of syrup prepared from coca leaves and cola nuts, hence the name given to this globally known drink. It was in 1916 that the famous glass bottle that made the drink such a success made its debut and became its trademark.
Even today, and in spite of competition, the Coca Cola Company is the largest non-alcoholic drink distributor and producer throughout the world, in front of its direct competitor “Pepsi”.
What is the average turnover of the Coca Cola Company and how is it distributed?
The Coca Cola Company generates more than 7 billion dollars profit each year from a total of almost 40 billion dollars in net income. But the production of this company must be divided in two large sectors.
The first of these sectors which represents the largest profit share of course relates to the sale of drinks. As opposed to what one could believe, the Coca Cola Company does not produce only soda of the same name but also distributes other well known drinks such as Sprite, Fanta, Minute Maid and Nestea. This sector by itself represents nearly 73% of the total benefit.
As for the second sector, it relates to the bottling. At the beginning, this part of work was entirely sub-contracted, but, since the Seventies, the Coca Cola Company decided to buy out the majority of the bottling factories in order to manage the entirety of its production without external providers. This part therefore relates to the 27% remaining sales turnover.
Of course, the majority of the Coca Cola Company sales are from abroad with nearly 75% of the sales turnover on a world level, whereas its competitors are much more present in the United States.
Prices and quotation of the Coca Cola shares
The Coca Cola Group shares are priced on the New York Stock Exchange or NYSE. Historically, the price of this share has evolved from 39 to 65 U.S. dollars since its IPO in 2005.
The stock exchange capitalisation of this company reached 128 billion dollars in 2010 and continues to make major profits.
Some advice for trading Coca Cola shares
Because of the strong volatility of Coca Cola shares, CFDs are the ideal trading tool. To predict the rise or fall of the price, it is recommended above all to take into account the world financial situation and the level of consumption.
The launch of a new product, such as a new drink, generally creates a clear rise in the price and it is therefore generally advantageous to take position at this precise time. But other opportunities are to be seized on a daily basis when closely following the financial results of this company.
For this you can find a lot of information available on the Internet as well as through consulting the various official publications from the Coca Cola Company.
The charts analysis could also be very useful for you when speculating on Coca Cola shares as the price generally follows the current market trend.