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Author: iceberg0 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1670  
Subject: Re: Discount conundrum Date: 5/18/2011 8:51 PM
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Hi Jack – When I went thru the KO 10-K for FYE2010, I found many accounts significantly disrupted by the bottling company re-acquisition last year. I’m not able to form a view on KO FMV at present. It might take some significant time to do so (like many acquisitive companies).

For example, the mCapex is going to increase to keep more machines running & I use a 3-yr look back period to develop a current estimate. Margins will also be reduced and more leverage could affect the co. specific risk premium.

I remember the sale of the capital intensive bottling operations being hailed as a value enhancer in the mid-1980’s. Buffett saw that, big time. I don’t yet see how the partial reversal of that sale can accomplish the same thing. The 4/29/11 Value Line sure looks positive though. I think their capex est. is suspect, didn’t change much.
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