Jim Cramer's Best Blogs
The most incredible aspect of this multinational company is how it deals with the fleeting, the currency and the commodity. For currencies, while Coca-Cola hedges, there is no doubt you are talking about severe, mid- to high-single-digit hits in the next six months. But even there, the company put a good face on it, saying that it expects the big, bad compares to end by the second half.
As for the commodity issue, what about the price of corn? It's simply not important -- not when compared to last year's commodity line, which was bad on every single plane. We tend to forget that oil is the most important line-item for most packaged goods companies. We forget that the retreat of oil, simultaneous to abatement of price-cutting, turns into the kind of margins that surprise, even for a predicable company like Coca-Cola.
Coca-Cola is a reminder that, if you only focus on fiscal cliffs and German intransigence and Chinese slowdowns, you miss what this market does best. You miss companies with superior management delivering better-than-expected quarters, which will then give you higher dividends and better capital appreciation.
Coke's brand, Coke's balance sheet and Coke's vision make a mockery of the brands and balance sheets and visions of the countries that interfere into our thinking every day. Management, pedigree, smarts: They are all more powerful than taxes, budget deficits and even employment woes.
Sometimes I think that, if we just talked stocks and didn't talk politics and its accoutrements, we would make you a lot more money.
Check that. We would almost always make you more money, and it would be a heck of a lot more interesting.
Hmm -- it's something to think about.
At the time of publication, Cramer had no positions in stocks mentioned.