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AdwinLee

AdwinLee

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2021-09-08

All ready for more green. Lol

2021-09-08

Still good....

Is It Too Late to Buy Apple Stock?

2021-09-08

?

Warren Buffett's Favorite Bank Stock -- And Why It Could Be Worth a Look Now

2021-09-07

$Baidu(BIDU)$i sold at $169.?

2021-09-07

$Apple(AAPL)$planned to sell.....

2021-09-07

$Baidu(BIDU)$keep coming......

2021-09-07

Cool

Sorry, the original content has been removed

2021-08-28

Finally i have open my account

Go to Tiger App to see more news

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Lol","listText":"All ready for more green. Lol","text":"All ready for more green. Lol","images":[{"img":"https://static.tigerbbs.com/eca1b6236ca1315dd883726c6e8eda18","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/889934567","isVote":1,"tweetType":1,"viewCount":373,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":889935239,"gmtCreate":1631101529021,"gmtModify":1676530467498,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Still good....","listText":"Still good....","text":"Still good....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/889935239","repostId":"2165360472","repostType":4,"repost":{"id":"2165360472","kind":"highlight","pubTimestamp":1631100780,"share":"https://ttm.financial/m/news/2165360472?lang=&edition=fundamental","pubTime":"2021-09-08 19:33","market":"us","language":"en","title":"Is It Too Late to Buy Apple Stock?","url":"https://stock-news.laohu8.com/highlight/detail?id=2165360472","media":"Motley Fool","summary":"The tech giant has generated explosive gains over the past two decades.","content":"<p><b>Apple</b>'s (NASDAQ:AAPL) stock rallied roughly 48,660% over the past 20 years and recently hit a new all-time high. Once dismissed as an also-ran of the tech sector, Apple's introductions of the iPod, iPhone, and iPad under Steve Jobs turned it into <a href=\"https://laohu8.com/S/AONE.U\">one</a> of the world's most valuable tech companies.</p>\n<p>After Jobs passed away in 2011, Apple continued to evolve under Tim Cook with new iPhones, fresh hardware devices like the Apple Watch, and the expansion of its software and services ecosystem. Apple also reinstated its dividend, initiated aggressive buybacks, and invested in next-gen technologies like augmented reality and connected vehicles.</p>\n<p>Apple became a trillion-dollar company in 2018 and a $2 trillion company last year. But after those massive long-term gains, investors who don't already own Apple might be wondering if it's too late to buy the stock. Let's examine the bearish and bullish cases for Apple to decide.</p>\n<p><img src=\"https://static.tigerbbs.com/cc0db7aae99872ee508b75351882fff1\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"></p>\n<p>Image source: Apple.</p>\n<p><b>Why it might be too late to buy Apple</b></p>\n<p>The bears often cite Apple's dependence on the iPhone, which generated 54% of its revenue in the first nine months of fiscal 2021, as its main weakness. Apple's iPhone sales rose this year as more users bought its first lineup of 5G iPhones, but that growth will likely decelerate next year as fewer consumers consider the iPhone 13 to be a crucial upgrade. Intense competition and the commoditization of the smartphone market also remain major long-term threats to Apple's biggest business.</p>\n<p>It's unclear if Apple will ever deliver another revolutionary product like the iPhone, and the lack of clarity regarding its future plans is worrisome.</p>\n<p>Another soft spot is Apple's dependence on China, which accounted for 19% of its revenue in the first nine months of the year. China is Apple's fastest-growing market, but it's also a minefield of unpredictable regulations, tariffs, and nationalism-driven boycotts. If the ongoing trade and tech tensions between the U.S. and China escalate, Apple could be an easy target for retaliatory regulations, taxes, or bans.</p>\n<p>The bears will also point out that Apple has grown too dependent on buybacks in recent years. It spent $82.4 billion on buybacks over the past 12 months, and even funded some of those purchases with fresh debt. Apple could arguably have spent more of that cash on investments and acquisitions to diversify its business away from the iPhone.</p>\n<p>Lastly, Apple's expansion of its services ecosystem faces significant long-term challenges. Its App Store faces pressure to lower its fees, while many of its new subscription services (Apple TV+, Apple Music, and Apple Arcade) are likely operating at losses to lock in more users.</p>\n<p><b>Why it might not be too late to buy Apple</b></p>\n<p>The bulls believe Apple's iPhones will continue to lock in consumers with their prisoner-taking software ecosystems, and that the device's sales -- while cyclical -- will remain stable over the long term.</p>\n<p><img src=\"https://static.tigerbbs.com/2f0193c46e290e13c95a5514f952d998\" tg-width=\"700\" tg-height=\"451\" referrerpolicy=\"no-referrer\" width=\"100%\" height=\"auto\"></p>\n<p>Image source: Apple.</p>\n<p>Apple also isn't sitting still as it milks the iPhone dry. It's reportedly developing augmented reality devices, an electric vehicle, and other new services to expand beyond single hardware platforms.</p>\n<p>As for China, the bulls believe Apple will make concessions (likely in terms of censorship and data protection) to remain in the government's good graces, and that its symbiotic relationship with China through<b> Foxconn</b> (OTC:FXCNF) -- the country's largest private employer&nbsp;-- will shield it from retaliatory regulations.</p>\n<p>The bulls will point out that while Apple spends a lot of cash on buybacks, it was still sitting on $193.6 billion in cash, cash equivalents, and marketable securities last quarter -- which gives it plenty of room for future acquisitions. Furthermore, it only issued new debt because interest rates were so low.</p>\n<p>As for the expansion of its ecosystem, Apple can offset the losses at its newer subscription services, which now serve more than 700 million subscribers worldwide, with its higher-margin App Store revenue -- even if certain developers and regulators pressure it to lower its 15%-30% cut. Locking in more subscribers also tethers them more tightly to the iPhone and its other hardware devices.</p>\n<p>Lastly, Apple's stock is still reasonably valued. Analysts expect its revenue and earnings to rise 33% and 70%, respectively, this year, followed by more modest growth next year as it laps the launch of the iPhone 12. The stock trades at 27 times forward earnings and seven times next year's sales.</p>\n<p><b>It's still a great long-term investment</b></p>\n<p>I traded in and out of Apple for years before buying a long-term position in early 2018. If I had simply bought and held Apple instead of trading it before then, I'd be sitting on much bigger gains.</p>\n<p>Therefore, I believe Apple is still a great long-term investment, and it still isn't too late to buy the stock. It probably won't replicate its gains from the past two decades over the next 20 years, but its core businesses remain strong, its brand inspires fierce loyalty, and it has plenty of cash to fund its future expansion plans beyond the iPhone.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is It Too Late to Buy Apple Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs It Too Late to Buy Apple Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-08 19:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/09/08/is-it-too-late-to-buy-apple-stock/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Apple's (NASDAQ:AAPL) stock rallied roughly 48,660% over the past 20 years and recently hit a new all-time high. Once dismissed as an also-ran of the tech sector, Apple's introductions of the iPod, ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/09/08/is-it-too-late-to-buy-apple-stock/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://www.fool.com/investing/2021/09/08/is-it-too-late-to-buy-apple-stock/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2165360472","content_text":"Apple's (NASDAQ:AAPL) stock rallied roughly 48,660% over the past 20 years and recently hit a new all-time high. Once dismissed as an also-ran of the tech sector, Apple's introductions of the iPod, iPhone, and iPad under Steve Jobs turned it into one of the world's most valuable tech companies.\nAfter Jobs passed away in 2011, Apple continued to evolve under Tim Cook with new iPhones, fresh hardware devices like the Apple Watch, and the expansion of its software and services ecosystem. Apple also reinstated its dividend, initiated aggressive buybacks, and invested in next-gen technologies like augmented reality and connected vehicles.\nApple became a trillion-dollar company in 2018 and a $2 trillion company last year. But after those massive long-term gains, investors who don't already own Apple might be wondering if it's too late to buy the stock. Let's examine the bearish and bullish cases for Apple to decide.\n\nImage source: Apple.\nWhy it might be too late to buy Apple\nThe bears often cite Apple's dependence on the iPhone, which generated 54% of its revenue in the first nine months of fiscal 2021, as its main weakness. Apple's iPhone sales rose this year as more users bought its first lineup of 5G iPhones, but that growth will likely decelerate next year as fewer consumers consider the iPhone 13 to be a crucial upgrade. Intense competition and the commoditization of the smartphone market also remain major long-term threats to Apple's biggest business.\nIt's unclear if Apple will ever deliver another revolutionary product like the iPhone, and the lack of clarity regarding its future plans is worrisome.\nAnother soft spot is Apple's dependence on China, which accounted for 19% of its revenue in the first nine months of the year. China is Apple's fastest-growing market, but it's also a minefield of unpredictable regulations, tariffs, and nationalism-driven boycotts. If the ongoing trade and tech tensions between the U.S. and China escalate, Apple could be an easy target for retaliatory regulations, taxes, or bans.\nThe bears will also point out that Apple has grown too dependent on buybacks in recent years. It spent $82.4 billion on buybacks over the past 12 months, and even funded some of those purchases with fresh debt. Apple could arguably have spent more of that cash on investments and acquisitions to diversify its business away from the iPhone.\nLastly, Apple's expansion of its services ecosystem faces significant long-term challenges. Its App Store faces pressure to lower its fees, while many of its new subscription services (Apple TV+, Apple Music, and Apple Arcade) are likely operating at losses to lock in more users.\nWhy it might not be too late to buy Apple\nThe bulls believe Apple's iPhones will continue to lock in consumers with their prisoner-taking software ecosystems, and that the device's sales -- while cyclical -- will remain stable over the long term.\n\nImage source: Apple.\nApple also isn't sitting still as it milks the iPhone dry. It's reportedly developing augmented reality devices, an electric vehicle, and other new services to expand beyond single hardware platforms.\nAs for China, the bulls believe Apple will make concessions (likely in terms of censorship and data protection) to remain in the government's good graces, and that its symbiotic relationship with China through Foxconn (OTC:FXCNF) -- the country's largest private employer -- will shield it from retaliatory regulations.\nThe bulls will point out that while Apple spends a lot of cash on buybacks, it was still sitting on $193.6 billion in cash, cash equivalents, and marketable securities last quarter -- which gives it plenty of room for future acquisitions. Furthermore, it only issued new debt because interest rates were so low.\nAs for the expansion of its ecosystem, Apple can offset the losses at its newer subscription services, which now serve more than 700 million subscribers worldwide, with its higher-margin App Store revenue -- even if certain developers and regulators pressure it to lower its 15%-30% cut. Locking in more subscribers also tethers them more tightly to the iPhone and its other hardware devices.\nLastly, Apple's stock is still reasonably valued. Analysts expect its revenue and earnings to rise 33% and 70%, respectively, this year, followed by more modest growth next year as it laps the launch of the iPhone 12. The stock trades at 27 times forward earnings and seven times next year's sales.\nIt's still a great long-term investment\nI traded in and out of Apple for years before buying a long-term position in early 2018. If I had simply bought and held Apple instead of trading it before then, I'd be sitting on much bigger gains.\nTherefore, I believe Apple is still a great long-term investment, and it still isn't too late to buy the stock. It probably won't replicate its gains from the past two decades over the next 20 years, but its core businesses remain strong, its brand inspires fierce loyalty, and it has plenty of cash to fund its future expansion plans beyond the iPhone.","news_type":1},"isVote":1,"tweetType":1,"viewCount":513,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":889935000,"gmtCreate":1631101475200,"gmtModify":1676530467481,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/889935000","repostId":"2165822398","repostType":4,"repost":{"id":"2165822398","kind":"highlight","pubTimestamp":1631100060,"share":"https://ttm.financial/m/news/2165822398?lang=&edition=fundamental","pubTime":"2021-09-08 19:21","market":"us","language":"en","title":"Warren Buffett's Favorite Bank Stock -- And Why It Could Be Worth a Look Now","url":"https://stock-news.laohu8.com/highlight/detail?id=2165822398","media":"Motley Fool","summary":"Here's a Buffett stock that two of our contributors both love.","content":"<p>In a recent episode of&nbsp;<i>The Rank,</i> longtime Fool.com contributors Matt Frankel, CFP, and Jason Hall ranked the 10 largest stock holdings in <b>Berkshire Hathaway's</b> (NYSE:BRK.A)(NYSE:BRK.B) portfolio -- and agreed on which <a href=\"https://laohu8.com/S/AONE.U\">one</a> is the best buy now.&nbsp; In this clip, <b>recorded on Aug. 30</b>, both experts explain why <b>Bank of America</b> (NYSE:BAC) was their No. 1 pick.</p>\n<p><b>Matt Frankel:</b> This was both of our No. 1, I was happy to see we agreed on this. One of my personal largest stock positions, it's Bank of America, ticker symbol is BAC. Jason, I don't know if you know the story of how Buffett came to be a big stockholder in Bank of America.</p>\n<p><b>Jason Hall:</b> Yeah. Buying the debt, right?</p>\n<p><b>Frankel:</b> Right, so Buffett's Bank of America investment is one of the perfect example of why when people say, \"How do I invest like Warren Buffett?\" My response is, \"You can't.\" This is a deal that no one else could have gotten. Shortly after the financial crisis, I want to say it was 2010 when this happened.</p>\n<p><b>Hall:</b> I know it was after a Moynihan had taken over as CEO.</p>\n<p><b>Frankel:</b> Right. He loved Brian Moynihan, he loved the bank's turnaround potential. He invested $5 billion in Bank of America preferred stock.</p>\n<p><b>Hall:</b> It was preferred stock or warrants?</p>\n<p><b>Frankel:</b> Preferred stock, paid a 6% annual dividend. $5 billion, it was paying $300 million in annual income to Berkshire. That didn't exist for any other shareholder at the moment. Not only that, but they gave Buffett warrants to buy 700 million shares at a share price of, I want to say it was $7.14. I think I remember that exact figure. Buffett kept these warrants in his back pocket, collected the $300 million in income from his preferred stock. He said when the time was getting close, he said as soon as Bank of America's dividend exceeds the $300 million, I'm getting in preferred stock income, that's when I'm going to exercise my warrants and convert that $5 billion investment into common stock. Berkshire's cost basis in those first 700 million shares is $5 billion. Before he converted the stock, they made a few billion dollars off of just preferred stock dividends, then they converted it to the common stock. The whole time Buffett said Bank of America will be one of our largest investments. Once we exercise those warrants, it'll be one of our largest investments and it's one that we value very highly. The last few years have really shown that because he's paired back most of his other bank holdings and added to Bank of America. Now, Berkshire owns more than 1 billion shares of Bank of America, owns 12.3% of the company. Requested to the, I think it was the SEC. They requested special permission to own more than 10% of a bank which you need special permission for. It's clearly, Warren Buffett's favorite bank stock and it's mine, too.</p>\n<p><b>Hall:</b> I'm going to share a screen here. This just shows the stock price roughly because it was October 2010, I think, is when we found out about the deal. The stock at the time was above $10 a share, then there was this decline right here. But at this point when it was already there, Berkshire had warrants that converted at $7.14 a share. It was just an incredible, incredible deal. But the key is, some of the other deals that Buffett has been able to get. Companies were going to pay the Buffett premium to have his name associated and that confidence in the business associated. For me, the reason it's my favorite bank is, Moynihan's done such an incredible job of simplifying, cleaning up the business, removing a lot of the risk and leveraging what they're really good at, which is taking just dirt cheap capital that they get and all of those deposits, and generating steady strong returns, improving the return profile. It trades for a reasonable valuation.</p>\n<p><b>Frankel:</b> Yeah, it's one of the more attractively valued bank stocks. It trades for little under 1.4 times book. If you remember back from <b>U.S. Bancorp</b>, they trade a little bit over 1.8 times book. I think Bank of America, they have a great cost of capital structure. They have perhaps the most to gain out of any of the banks from interest rates rising. They have the biggest proportion of non-interest bearing deposits. Meaning that if interest rates rise, the amount that they'll collect on things like auto loans, and mortgages, and personal loans, that'll go up as interest rates rise, but they're not paying any more interest on those deposits. The profit margin expands just a lot quicker than most banks that have to raise deposit interest rates proportionately as interest rates rise. All banks have some non-interest deposits, Bank of America just has the biggest proportion, which is why I like it at the current low interest environment we're in. I think they have the most to gain as interest rates rise.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Warren Buffett's Favorite Bank Stock -- And Why It Could Be Worth a Look Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWarren Buffett's Favorite Bank Stock -- And Why It Could Be Worth a Look Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-08 19:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/09/08/warren-buffetts-favorite-bank-stock-and-why-it-cou/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In a recent episode of The Rank, longtime Fool.com contributors Matt Frankel, CFP, and Jason Hall ranked the 10 largest stock holdings in Berkshire Hathaway's (NYSE:BRK.A)(NYSE:BRK.B) portfolio -- and...</p>\n\n<a href=\"https://www.fool.com/investing/2021/09/08/warren-buffetts-favorite-bank-stock-and-why-it-cou/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BRK.A":"伯克希尔","BRK.B":"伯克希尔B","BAC":"美国银行"},"source_url":"https://www.fool.com/investing/2021/09/08/warren-buffetts-favorite-bank-stock-and-why-it-cou/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2165822398","content_text":"In a recent episode of The Rank, longtime Fool.com contributors Matt Frankel, CFP, and Jason Hall ranked the 10 largest stock holdings in Berkshire Hathaway's (NYSE:BRK.A)(NYSE:BRK.B) portfolio -- and agreed on which one is the best buy now.  In this clip, recorded on Aug. 30, both experts explain why Bank of America (NYSE:BAC) was their No. 1 pick.\nMatt Frankel: This was both of our No. 1, I was happy to see we agreed on this. One of my personal largest stock positions, it's Bank of America, ticker symbol is BAC. Jason, I don't know if you know the story of how Buffett came to be a big stockholder in Bank of America.\nJason Hall: Yeah. Buying the debt, right?\nFrankel: Right, so Buffett's Bank of America investment is one of the perfect example of why when people say, \"How do I invest like Warren Buffett?\" My response is, \"You can't.\" This is a deal that no one else could have gotten. Shortly after the financial crisis, I want to say it was 2010 when this happened.\nHall: I know it was after a Moynihan had taken over as CEO.\nFrankel: Right. He loved Brian Moynihan, he loved the bank's turnaround potential. He invested $5 billion in Bank of America preferred stock.\nHall: It was preferred stock or warrants?\nFrankel: Preferred stock, paid a 6% annual dividend. $5 billion, it was paying $300 million in annual income to Berkshire. That didn't exist for any other shareholder at the moment. Not only that, but they gave Buffett warrants to buy 700 million shares at a share price of, I want to say it was $7.14. I think I remember that exact figure. Buffett kept these warrants in his back pocket, collected the $300 million in income from his preferred stock. He said when the time was getting close, he said as soon as Bank of America's dividend exceeds the $300 million, I'm getting in preferred stock income, that's when I'm going to exercise my warrants and convert that $5 billion investment into common stock. Berkshire's cost basis in those first 700 million shares is $5 billion. Before he converted the stock, they made a few billion dollars off of just preferred stock dividends, then they converted it to the common stock. The whole time Buffett said Bank of America will be one of our largest investments. Once we exercise those warrants, it'll be one of our largest investments and it's one that we value very highly. The last few years have really shown that because he's paired back most of his other bank holdings and added to Bank of America. Now, Berkshire owns more than 1 billion shares of Bank of America, owns 12.3% of the company. Requested to the, I think it was the SEC. They requested special permission to own more than 10% of a bank which you need special permission for. It's clearly, Warren Buffett's favorite bank stock and it's mine, too.\nHall: I'm going to share a screen here. This just shows the stock price roughly because it was October 2010, I think, is when we found out about the deal. The stock at the time was above $10 a share, then there was this decline right here. But at this point when it was already there, Berkshire had warrants that converted at $7.14 a share. It was just an incredible, incredible deal. But the key is, some of the other deals that Buffett has been able to get. Companies were going to pay the Buffett premium to have his name associated and that confidence in the business associated. For me, the reason it's my favorite bank is, Moynihan's done such an incredible job of simplifying, cleaning up the business, removing a lot of the risk and leveraging what they're really good at, which is taking just dirt cheap capital that they get and all of those deposits, and generating steady strong returns, improving the return profile. It trades for a reasonable valuation.\nFrankel: Yeah, it's one of the more attractively valued bank stocks. It trades for little under 1.4 times book. If you remember back from U.S. Bancorp, they trade a little bit over 1.8 times book. I think Bank of America, they have a great cost of capital structure. They have perhaps the most to gain out of any of the banks from interest rates rising. They have the biggest proportion of non-interest bearing deposits. Meaning that if interest rates rise, the amount that they'll collect on things like auto loans, and mortgages, and personal loans, that'll go up as interest rates rise, but they're not paying any more interest on those deposits. The profit margin expands just a lot quicker than most banks that have to raise deposit interest rates proportionately as interest rates rise. All banks have some non-interest deposits, Bank of America just has the biggest proportion, which is why I like it at the current low interest environment we're in. I think they have the most to gain as interest rates rise.","news_type":1},"isVote":1,"tweetType":1,"viewCount":565,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880163699,"gmtCreate":1631025578611,"gmtModify":1676530446843,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>i sold at $169.?","listText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>i sold at $169.?","text":"$Baidu(BIDU)$i sold at $169.?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/880163699","isVote":1,"tweetType":1,"viewCount":1903,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880182534,"gmtCreate":1631025247128,"gmtModify":1676530446701,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>planned to sell.....","listText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>planned to sell.....","text":"$Apple(AAPL)$planned to sell.....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880182534","isVote":1,"tweetType":1,"viewCount":237,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880959042,"gmtCreate":1631012821486,"gmtModify":1676530441889,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>keep coming......","listText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>keep coming......","text":"$Baidu(BIDU)$keep coming......","images":[{"img":"https://static.tigerbbs.com/7057fad01a37932aeeedbe60ba44f691","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880959042","isVote":1,"tweetType":1,"viewCount":448,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":880060586,"gmtCreate":1631000714645,"gmtModify":1676530438822,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880060586","repostId":"1167423848","repostType":4,"isVote":1,"tweetType":1,"viewCount":426,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":819463101,"gmtCreate":1630091444303,"gmtModify":1676530222312,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Finally i have open my account","listText":"Finally i have open my account","text":"Finally i have open my account","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/819463101","isVote":1,"tweetType":1,"viewCount":360,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":889935239,"gmtCreate":1631101529021,"gmtModify":1676530467498,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Still good....","listText":"Still good....","text":"Still good....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":6,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/889935239","repostId":"2165360472","repostType":4,"isVote":1,"tweetType":1,"viewCount":513,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880060586,"gmtCreate":1631000714645,"gmtModify":1676530438822,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Cool","listText":"Cool","text":"Cool","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880060586","repostId":"1167423848","repostType":4,"repost":{"id":"1167423848","kind":"news","pubTimestamp":1631000207,"share":"https://ttm.financial/m/news/1167423848?lang=&edition=fundamental","pubTime":"2021-09-07 15:36","market":"us","language":"en","title":"Thinking Of Buying Coca-Cola? Think Again","url":"https://stock-news.laohu8.com/highlight/detail?id=1167423848","media":"Seeking Alpha","summary":"Summary\n\nKO looks like it wants to break out.\nBut I'm skeptical right now given a number of fundamen","content":"<p><b>Summary</b></p>\n<ul>\n <li>KO looks like it wants to break out.</li>\n <li>But I'm skeptical right now given a number of fundamental headwinds.</li>\n <li>With the valuation stretched, avoid KO.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ebefc82af0f236beb1dcd9de3c554471\" tg-width=\"1536\" tg-height=\"1024\" width=\"100%\" height=\"auto\"><span>Justin Sullivan/Getty Images News</span></p>\n<p>Beverage companies are not always the most glamorous stocks to buy, but over time, they tend to do well. Steady demand from consumers in both at-home and away-from-home channels generally fuels not only reliable growth but some measure of recession resistance as well.</p>\n<p>Bubbly beverage OG&nbsp;<b>Coca-Cola</b>(KO) is just such a stock that has paid rising dividends longer than most of us have been on this earth, so it fits nicely into the “recession resistant” and “steady growth” categories to be sure.</p>\n<p>But does that make the stock a buy today? In a world of elevated valuations and low yields, Coca-Cola today seems to fit the bill on both of those accounts as well, and given this, I’m not certain it’s a good use of your capital.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e0bbebb19e477d4dc2dc1fced28dd1ef\" tg-width=\"640\" tg-height=\"615\" width=\"100%\" height=\"auto\"><span>Source: StockCharts</span></p>\n<p>We’ll start as we always do with a look at the chart to get a glimpse of where we are today. First, the stock broke out over its prior consolidation earlier this year after being pummeled down to $47 back in January. The rally took the stock up about ten bucks in a virtually straight line, which is a huge move for a stock like this. That rally was quite strong, but proved to be unsustainable, as evidenced by the momentum indicators.</p>\n<p>The PPO made its high in April, months before the share price did, and even in the most recent stage of the rally, the PPO was actually declining fairly sharply, indicating that there was a meaningful negative divergence. That’s generally what the end of a rally looks like; the bulls are still fighting but not nearly as hard.</p>\n<p>However, the PPO recently successfully tested centerline support (the blue oval) and looks like it wants to bounce. I’ve noted the trendline of the current rally, which is just about ready to bump heads with the prior high at $57. We’re going to get a showdown, and the stock will either break trend and decline, or break out and move higher.</p>\n<p>It looks to me like the stock wants to break out, so that’s the way I’m leaning. However, I’m not certain enough to bet on that because the momentum divergences are concerning to me. But if I<i>had</i>to pick one, I’d say a breakout is slightly more likely.</p>\n<p><b>Fundamental considerations</b></p>\n<p>Now, with a stock like Coca-Cola, there are lots of other considerations besides just the chart. We know that away-from-home volumes dried up massively for the company during the pandemic, as things like restaurants, sports stadiums, and other places where you would go out and buy a zesty beverage were shut temporarily. That segment is still gradually recovering for Coca-Cola, and it has had to compensate with its other growth avenues that are focused at-home, such as coffee, tea, and its core sparkling beverages in smaller packages, for instance.</p>\n<p>That has shown up in revenue estimates, which we can see below.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5e4b3773c1e7e807127bbb82caa7da31\" tg-width=\"640\" tg-height=\"288\" width=\"100%\" height=\"auto\"><span>Source: Seeking Alpha</span></p>\n<p>Ignore the massive declines in the early part of this chart; that was due to the company’s now-completed bottling refranchising effort. We can focus on the past couple of years, and see that the company’s revenue estimates are still struggling relative to expectations. As great of a company as Coca-Cola is, you cannot escape the fact that it has a tendency to struggle with revenue estimates. That creates the obvious problem of a lower top line, but also because that impacts things like margins.</p>\n<p>The goal of the company’s refranchising effort was to boost margins by divesting low-margin bottling revenue, and it has certainly worked. But that tailwind is no more as those gains have been lapped, and Coca-Cola will now need to find actual margin improvements through sales mix, volumes, or any other means possible.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/68a522469c81b40f6c530d60cfe366bd\" tg-width=\"640\" tg-height=\"166\" width=\"100%\" height=\"auto\"><span>Source: TIKR.com</span></p>\n<p>As we can see, it is working to some extent. Operating margins are in excess of 31% on a trailing-twelve-month basis, which is great. But that’s only marginally higher than it was before the bottling refranchising effort was complete. I’ll say that the company has been able to find profitability improvements in recent quarters, some of which were due to corporate layoffs to reduce headcount where it was apparently bloated. But for investors wanting to own this stock, operating margins are critical, particularly because revenue growth has been so weak.</p>\n<p>I’m not certain where revenue growth will come from for Coca-Cola apart from the usual suspects of bottled water, coffee, tea, and other non-sparkling beverages. The trick is that sparkling isn’t growing for the most part but continues to make a huge proportion of revenue. That makes overall growth tricky, even if one or more segments are flying. Diversification works both ways, and in Coca-Cola’s case, it has been a years-long struggle with consumers shifting preferences to non-sparkling beverages.</p>\n<p>Now, let’s take a look at earnings.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a05cc94d311a7e832b05260e28f4e02f\" tg-width=\"640\" tg-height=\"292\" width=\"100%\" height=\"auto\"><span>Source: Seeking Alpha</span></p>\n<p>We can see the same sort of behavior that we saw with revenue, and that is not a compliment. EPS estimates have nearly continuously fallen, and while there’s been an uptick in recent months, it is peanuts compared to the prior declines.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/88bfd9cfba9cb917a9ba85f7c2b6bd1d\" tg-width=\"434\" tg-height=\"108\" width=\"100%\" height=\"auto\"><span>Source: Seeking Alpha</span></p>\n<p>We can see that all 24 revisions that have been made in the past three months have been higher, and that’s fantastic. However, in this case, keep in mind it was because the company is simply retracing lost ground; these are not estimates that are carving out new highs by any stretch of the imagination. You must temper your bullishness as a result, and keep in mind that the stock is knocking on the door of new highs while EPS estimates languish; more on that in a bit.</p>\n<p><b>Other considerations</b></p>\n<p>Apart from revenue concerns, I have others with Coca-Cola as well. Below I’ve plotted long-term debt over the past several years to illustrate one meaningful concern I have.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7520b696d1155d8ad6f911efaaf25c3f\" tg-width=\"640\" tg-height=\"167\" width=\"100%\" height=\"auto\"><span>Source: TIKR.com</span></p>\n<p>We’re now up to about $40 billion in long-term debt, which is much higher than it was even before the refranchising effort was kicked off. Debt has been steady for the past handful of quarters, but this is a lot of debt for any company, and that includes one of the world’s premier consumer brands. Coca-Cola has the credit to borrow almost whatever it wants, so it isn’t like we’re looking at default potential. But what it does mean is that the company is on the hook for an ever-rising amount of interest expense, which is also taking a bigger share of operating income.</p>\n<p>Below, we have operating income and interest expense on a trailing-twelve-month basis to illustrate what I’m on about.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e7c1d03e3beebf7482067c62b336d865\" tg-width=\"640\" tg-height=\"167\" width=\"100%\" height=\"auto\"><span>Source: TIKR.com</span></p>\n<p>Operating income has been remarkably flat over the years given the amount of change the company has undergone. The most recent quarter finally saw a new high in TTM operating income at $11.5 billion, but interest expense was also $2.2 billion. As a percentage of operating income, interest expense is now nearly 20%. So while the company has been busy trying to boost margins and scrape together some revenue increases, it continues to pay more to creditors.</p>\n<p>This, in turn, reduces EPS because more and more operating income is going to creditors rather than shareholders. At a time when the company is struggling to grow EPS, this is yet another headwind it doesn’t need.</p>\n<p>There’s another consideration for Coca-Cola given its mostly non-US revenue base, and that is forex conversion.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/051241c57ed64f0f6e8247c1cd69b4f8\" tg-width=\"640\" tg-height=\"167\" width=\"100%\" height=\"auto\"><span>Source: TIKR.com</span></p>\n<p>Forex conversion has been a headwind given US dollar strength, and as long as the dollar is strong, the company will continue to have hundreds of millions of dollars of headwinds from forex conversion over time. This fluctuates a bunch given the unpredictable nature of forex crosses, but one thing is clear: Coca-Cola isn’t managing it well and it shows.</p>\n<p><b>Final thoughts</b></p>\n<p>Coca-Cola has some of the greatest consumer brands that have ever existed, and it is a terrific dividend stock. However, the points I’ve raised here make me wary of the stock as it tries to make new highs. I see the valuation as quite stretched, not only against historical norms but against the company’s ability to grow earnings given the points I’ve raised.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0749226ff0f1d634f7296539e0b11cdd\" tg-width=\"640\" tg-height=\"188\" width=\"100%\" height=\"auto\"><span>Source: TIKR.com</span></p>\n<p>The stock is at ~24X forward earnings today, which is nearly its highest valuation ever. The stock was slightly more expensive at times in 2020 and 2021, but compared to historical valuations, I see the stock as overpriced. That doesn’t mean it cannot get more overpriced by any means, but I’d suggest caution at this stage.</p>\n<p>As I mentioned, I think the path of least resistance short-term is probably higher, but I’m in no way interested in trying to trade it. There are numerous headwinds in place that make me doubt the rally, and the valuation is way too stretched for my liking. There are better consumer stocks to buy than Coca-Cola, and if you want the dividend, I think you wait for another larger selloff before pulling the trigger. Medium-term, I see the stock either pulling back to reflect the headwinds I’ve mentioned, or consolidating for a long time to allow EPS to catch up to the share price. Either way, there is no urgency to go out and buy today.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Thinking Of Buying Coca-Cola? Think Again</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThinking Of Buying Coca-Cola? Think Again\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-09-07 15:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4453756-thinking-of-buying-coca-cola-think-again><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nKO looks like it wants to break out.\nBut I'm skeptical right now given a number of fundamental headwinds.\nWith the valuation stretched, avoid KO.\n\nJustin Sullivan/Getty Images News\nBeverage ...</p>\n\n<a href=\"https://seekingalpha.com/article/4453756-thinking-of-buying-coca-cola-think-again\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"KO":"可口可乐"},"source_url":"https://seekingalpha.com/article/4453756-thinking-of-buying-coca-cola-think-again","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1167423848","content_text":"Summary\n\nKO looks like it wants to break out.\nBut I'm skeptical right now given a number of fundamental headwinds.\nWith the valuation stretched, avoid KO.\n\nJustin Sullivan/Getty Images News\nBeverage companies are not always the most glamorous stocks to buy, but over time, they tend to do well. Steady demand from consumers in both at-home and away-from-home channels generally fuels not only reliable growth but some measure of recession resistance as well.\nBubbly beverage OG Coca-Cola(KO) is just such a stock that has paid rising dividends longer than most of us have been on this earth, so it fits nicely into the “recession resistant” and “steady growth” categories to be sure.\nBut does that make the stock a buy today? In a world of elevated valuations and low yields, Coca-Cola today seems to fit the bill on both of those accounts as well, and given this, I’m not certain it’s a good use of your capital.\nSource: StockCharts\nWe’ll start as we always do with a look at the chart to get a glimpse of where we are today. First, the stock broke out over its prior consolidation earlier this year after being pummeled down to $47 back in January. The rally took the stock up about ten bucks in a virtually straight line, which is a huge move for a stock like this. That rally was quite strong, but proved to be unsustainable, as evidenced by the momentum indicators.\nThe PPO made its high in April, months before the share price did, and even in the most recent stage of the rally, the PPO was actually declining fairly sharply, indicating that there was a meaningful negative divergence. That’s generally what the end of a rally looks like; the bulls are still fighting but not nearly as hard.\nHowever, the PPO recently successfully tested centerline support (the blue oval) and looks like it wants to bounce. I’ve noted the trendline of the current rally, which is just about ready to bump heads with the prior high at $57. We’re going to get a showdown, and the stock will either break trend and decline, or break out and move higher.\nIt looks to me like the stock wants to break out, so that’s the way I’m leaning. However, I’m not certain enough to bet on that because the momentum divergences are concerning to me. But if Ihadto pick one, I’d say a breakout is slightly more likely.\nFundamental considerations\nNow, with a stock like Coca-Cola, there are lots of other considerations besides just the chart. We know that away-from-home volumes dried up massively for the company during the pandemic, as things like restaurants, sports stadiums, and other places where you would go out and buy a zesty beverage were shut temporarily. That segment is still gradually recovering for Coca-Cola, and it has had to compensate with its other growth avenues that are focused at-home, such as coffee, tea, and its core sparkling beverages in smaller packages, for instance.\nThat has shown up in revenue estimates, which we can see below.\nSource: Seeking Alpha\nIgnore the massive declines in the early part of this chart; that was due to the company’s now-completed bottling refranchising effort. We can focus on the past couple of years, and see that the company’s revenue estimates are still struggling relative to expectations. As great of a company as Coca-Cola is, you cannot escape the fact that it has a tendency to struggle with revenue estimates. That creates the obvious problem of a lower top line, but also because that impacts things like margins.\nThe goal of the company’s refranchising effort was to boost margins by divesting low-margin bottling revenue, and it has certainly worked. But that tailwind is no more as those gains have been lapped, and Coca-Cola will now need to find actual margin improvements through sales mix, volumes, or any other means possible.\nSource: TIKR.com\nAs we can see, it is working to some extent. Operating margins are in excess of 31% on a trailing-twelve-month basis, which is great. But that’s only marginally higher than it was before the bottling refranchising effort was complete. I’ll say that the company has been able to find profitability improvements in recent quarters, some of which were due to corporate layoffs to reduce headcount where it was apparently bloated. But for investors wanting to own this stock, operating margins are critical, particularly because revenue growth has been so weak.\nI’m not certain where revenue growth will come from for Coca-Cola apart from the usual suspects of bottled water, coffee, tea, and other non-sparkling beverages. The trick is that sparkling isn’t growing for the most part but continues to make a huge proportion of revenue. That makes overall growth tricky, even if one or more segments are flying. Diversification works both ways, and in Coca-Cola’s case, it has been a years-long struggle with consumers shifting preferences to non-sparkling beverages.\nNow, let’s take a look at earnings.\nSource: Seeking Alpha\nWe can see the same sort of behavior that we saw with revenue, and that is not a compliment. EPS estimates have nearly continuously fallen, and while there’s been an uptick in recent months, it is peanuts compared to the prior declines.\nSource: Seeking Alpha\nWe can see that all 24 revisions that have been made in the past three months have been higher, and that’s fantastic. However, in this case, keep in mind it was because the company is simply retracing lost ground; these are not estimates that are carving out new highs by any stretch of the imagination. You must temper your bullishness as a result, and keep in mind that the stock is knocking on the door of new highs while EPS estimates languish; more on that in a bit.\nOther considerations\nApart from revenue concerns, I have others with Coca-Cola as well. Below I’ve plotted long-term debt over the past several years to illustrate one meaningful concern I have.\nSource: TIKR.com\nWe’re now up to about $40 billion in long-term debt, which is much higher than it was even before the refranchising effort was kicked off. Debt has been steady for the past handful of quarters, but this is a lot of debt for any company, and that includes one of the world’s premier consumer brands. Coca-Cola has the credit to borrow almost whatever it wants, so it isn’t like we’re looking at default potential. But what it does mean is that the company is on the hook for an ever-rising amount of interest expense, which is also taking a bigger share of operating income.\nBelow, we have operating income and interest expense on a trailing-twelve-month basis to illustrate what I’m on about.\nSource: TIKR.com\nOperating income has been remarkably flat over the years given the amount of change the company has undergone. The most recent quarter finally saw a new high in TTM operating income at $11.5 billion, but interest expense was also $2.2 billion. As a percentage of operating income, interest expense is now nearly 20%. So while the company has been busy trying to boost margins and scrape together some revenue increases, it continues to pay more to creditors.\nThis, in turn, reduces EPS because more and more operating income is going to creditors rather than shareholders. At a time when the company is struggling to grow EPS, this is yet another headwind it doesn’t need.\nThere’s another consideration for Coca-Cola given its mostly non-US revenue base, and that is forex conversion.\nSource: TIKR.com\nForex conversion has been a headwind given US dollar strength, and as long as the dollar is strong, the company will continue to have hundreds of millions of dollars of headwinds from forex conversion over time. This fluctuates a bunch given the unpredictable nature of forex crosses, but one thing is clear: Coca-Cola isn’t managing it well and it shows.\nFinal thoughts\nCoca-Cola has some of the greatest consumer brands that have ever existed, and it is a terrific dividend stock. However, the points I’ve raised here make me wary of the stock as it tries to make new highs. I see the valuation as quite stretched, not only against historical norms but against the company’s ability to grow earnings given the points I’ve raised.\nSource: TIKR.com\nThe stock is at ~24X forward earnings today, which is nearly its highest valuation ever. The stock was slightly more expensive at times in 2020 and 2021, but compared to historical valuations, I see the stock as overpriced. That doesn’t mean it cannot get more overpriced by any means, but I’d suggest caution at this stage.\nAs I mentioned, I think the path of least resistance short-term is probably higher, but I’m in no way interested in trying to trade it. There are numerous headwinds in place that make me doubt the rally, and the valuation is way too stretched for my liking. There are better consumer stocks to buy than Coca-Cola, and if you want the dividend, I think you wait for another larger selloff before pulling the trigger. Medium-term, I see the stock either pulling back to reflect the headwinds I’ve mentioned, or consolidating for a long time to allow EPS to catch up to the share price. Either way, there is no urgency to go out and buy today.","news_type":1},"isVote":1,"tweetType":1,"viewCount":426,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880163699,"gmtCreate":1631025578611,"gmtModify":1676530446843,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>i sold at $169.?","listText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>i sold at $169.?","text":"$Baidu(BIDU)$i sold at $169.?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/880163699","isVote":1,"tweetType":1,"viewCount":1903,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880182534,"gmtCreate":1631025247128,"gmtModify":1676530446701,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>planned to sell.....","listText":"<a href=\"https://laohu8.com/S/AAPL\">$Apple(AAPL)$</a>planned to sell.....","text":"$Apple(AAPL)$planned to sell.....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880182534","isVote":1,"tweetType":1,"viewCount":237,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":880959042,"gmtCreate":1631012821486,"gmtModify":1676530441889,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>keep coming......","listText":"<a href=\"https://laohu8.com/S/BIDU\">$Baidu(BIDU)$</a>keep coming......","text":"$Baidu(BIDU)$keep coming......","images":[{"img":"https://static.tigerbbs.com/7057fad01a37932aeeedbe60ba44f691","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/880959042","isVote":1,"tweetType":1,"viewCount":448,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":889935000,"gmtCreate":1631101475200,"gmtModify":1676530467481,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"?","listText":"?","text":"?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/889935000","repostId":"2165822398","repostType":4,"isVote":1,"tweetType":1,"viewCount":565,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":889934567,"gmtCreate":1631101729259,"gmtModify":1676530467521,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"All ready for more green. Lol","listText":"All ready for more green. Lol","text":"All ready for more green. Lol","images":[{"img":"https://static.tigerbbs.com/eca1b6236ca1315dd883726c6e8eda18","width":"1080","height":"1920"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/889934567","isVote":1,"tweetType":1,"viewCount":373,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":819463101,"gmtCreate":1630091444303,"gmtModify":1676530222312,"author":{"id":"4093183175808170","authorId":"4093183175808170","name":"AdwinLee","avatar":"https://static.tigerbbs.com/7dfc22cc91f1bec625931b62ea175961","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"4093183175808170","authorIdStr":"4093183175808170"},"themes":[],"htmlText":"Finally i have open my account","listText":"Finally i have open my account","text":"Finally i have open my account","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/819463101","isVote":1,"tweetType":1,"viewCount":360,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}