Cott Corporation is a publicly traded company who is the largest retailer brand soft drink provider in the world that operates in 60 countries across the globe. However, the company has experienced some sales growth within the last couple of months due to the state of the economy. Private label soft drink sales are rising. The company cannot compete with other leading soft drink names such as Pepsi and Coca-Cola. The board of directors and management have had some recent changes and need some time for some adjustment.
The stock price closed on the first day of class, May 27th: $5.53
The stock price closed on the last day of class, June 26th: $5.31
The stock price steadily declined over the month. However, there were days when the price was up from the previous day.
Cott would be a good company to work for because of their values and commitment to their employees. However, the state of the company does not look prosperous with the large soft drink companies taking up most of the market share. It doesn't look good for the future of Cott, therefore there is a possibility of losing your job if you started working here. So right now I would not take the chance to work for Cott even though it does seem to have a more family like environment than most corporations.
I would not recommend investing in Cott Corporation. The stock is at a fairly low price. The stock is just not earning money and as stated previously is steadily dropping in price. The company is losing money more than ever before and is not showing hope for the future. Their profitability ratios are all negative due to the loss the company incurred last year. I also think the company is experiencing too many changes in management and it will take a while for the company to get situated. The company may have a future but right now I would not risk investing in a company that might not make it too many more years.
Sunday, June 28, 2009
Saturday, June 20, 2009
Wrapping it up with Cott Corpoartion
Over the past month we have looked at the company's financials, board of directors, management team, and their mission statement. As you can see from the posts Cott is struggling to keep up with the dominant players in the industry Coca-Cola and PepsiCo. Their financial position from the previous year (2007) has only worsened, showing yet again another larger net loss in 2008. The board of directors and management have shown changes and made adjustments in hopes that this will help the company in the upcoming year.
As mentioned at the Barclay conference Cott has high hopes for their private label soft drinks to increase in sales due to the economic downtown. In the first couple months of this year they have seen positive numbers.
Hopefully, Cott will remain a player in the soft drink industry because I don't know if I could give up my RC Cola just yet even after hearing about all the health risks over soft drinks.
As mentioned at the Barclay conference Cott has high hopes for their private label soft drinks to increase in sales due to the economic downtown. In the first couple months of this year they have seen positive numbers.
Hopefully, Cott will remain a player in the soft drink industry because I don't know if I could give up my RC Cola just yet even after hearing about all the health risks over soft drinks.
Within Minutes...
Here is a link to a video talking about what soft drinks do to your body within minutes....it is kind of depressing especially when you love soft drink!
http://www.youtube.com/watch?v=4HxK0RjKNhk
http://www.youtube.com/watch?v=4HxK0RjKNhk
Contract with Wal-Mart
In January 2009 Wal-Mart decided to end its contract with Cott Corporation. The phase out plan is suppose to happen over a period of three years. Wal-Mart has decided that they might need the additional space to market their own private label brands in the future. However, this phase out plan will not completely terminate Cott as a Wal-Mart supplier.
Here is a link to an article: http://www.istockanalyst.com/article/viewiStockNews/articleid/2985086
According to Cott's 2009 Annual Report sales at Wal-Mart stores have already rapidly decreased. I wonder what this decision will mean for Cott's financials over the next three years.
Here is a link to an article: http://www.istockanalyst.com/article/viewiStockNews/articleid/2985086
According to Cott's 2009 Annual Report sales at Wal-Mart stores have already rapidly decreased. I wonder what this decision will mean for Cott's financials over the next three years.
Financial Strength Ratios
Company Industry S&P 500
Quick Ratio (MRQ)
0.76 1.40 1.24
Current Ratio (MRQ)
1.20 1.85 1.50
LT Debt to Equity (MRQ)
119.10 23.35 91.60
The quick ratio indicates that the company is slightly relying on its inventory to pay its bills on time, however the current ratio is above 1 and not as high as the industry average but fairly close to the S&P 500 average. The company appears to be highly leveraged but the S&P 500 average is high as well.
Top 10 Reasons to NOT Drink Soft Drinks
So we have all heard the buzz about how bad soft drinks are for your health. So here are the top 10 reasons why the drinks are so bad for you:
1.Soft drinks steal water from the body.
2. Soft Drinks never quench your thirst, certainly not your body's need for water.
3. The elevated levels of phosphates in soft drinks leach vital minerals from your body.
4. Soft Drinks can remove rust from a car bumper or other metal surfaces.
5. The high amounts of sugar in Soft Drinks causes your pancreas to produce an abundance of insulin, which leads to a "sugar crash".
6. Soft Drinks severely interfere with digestion.
7. Diet soft drinks contain Aspartame, which has been linked to depression, insomnia, neurological disease and a plethora of other illness.
8. Soft Drinks are EXTREMELY acidic, so much so that they can eat through the liner of an aluminum can and leach aluminum from the can if it sits on the shelf too long.
9. Soft Drinks are EXTREMELY acidic
10. Soft Drinks are the WORST THING you can possibly put in your body.
The link to the complete article: http://www.watershed.net/top10sd.aspx
I believe soft drinks are not all terrible. Of course anything that you take advantage of is eventually going to catch up with you. But soft drinks in moderation I don't think are going to kill you...hopefully!
1.Soft drinks steal water from the body.
2. Soft Drinks never quench your thirst, certainly not your body's need for water.
3. The elevated levels of phosphates in soft drinks leach vital minerals from your body.
4. Soft Drinks can remove rust from a car bumper or other metal surfaces.
5. The high amounts of sugar in Soft Drinks causes your pancreas to produce an abundance of insulin, which leads to a "sugar crash".
6. Soft Drinks severely interfere with digestion.
7. Diet soft drinks contain Aspartame, which has been linked to depression, insomnia, neurological disease and a plethora of other illness.
8. Soft Drinks are EXTREMELY acidic, so much so that they can eat through the liner of an aluminum can and leach aluminum from the can if it sits on the shelf too long.
9. Soft Drinks are EXTREMELY acidic
10. Soft Drinks are the WORST THING you can possibly put in your body.
The link to the complete article: http://www.watershed.net/top10sd.aspx
I believe soft drinks are not all terrible. Of course anything that you take advantage of is eventually going to catch up with you. But soft drinks in moderation I don't think are going to kill you...hopefully!
Friday, June 19, 2009
Cott's Stock Price Over the Last Six Months
This is a six month view of Cott's stock price. As you can see the company has had its ups and downs however, the stock price looks to be coming back steadily. But still the company has no comparison to what Coca-Cola and PepsiCo. stock's are trading for.
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