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Wednesday, March 29, 2017

Investment Analysis Review on Coke

Posted by Tim Stobbs on January 21, 2009

Well Brad the blogger behind the blog, Triaging My Way to Financial Success, is offering a detailed analysis of certain companines on his website. I was given a copy of one on Coke to do a review on. To give you an idea of what the document looks like here is a part copy of the full analysis and here is a list of the other reports available.

Now generally speaking I think most stock analysis available on the web is garbage. It’s always too short and too little detail to help anyone make a decent decision (of course there are some exceptions). So out of curiosity to see a more full blown analysis I agreed to do this review. I have to admit I was somewhat surprised on the amount of detail research Brad did to come up with the report. The full report is 14 pages long and has a very in depth discussion of Coke’s business model, their management and a valuation (including a spreadsheet of past performance data).

Despite being cynical, at the start, I had to admit I was impressed on the depth of the discussion and the obvious amount of research which went into the report. Brad worked hard to come up with a good analysis of the stock and even provided some good comparison to Pepsi.

Now Brad isn’t doing this for his health, but rather he is trying to sell these detailed analysis for $19 per report or $125 for a full year subscription (or eight reports a year). I can respect a blogger that tries to take his passion and turn it into a product. After all I’m at page 33 of my book manuscript.

Yet the question is would I personally buy these reports. The answer is no. First off I’m not currently interested in most the companies he has previous researched at this time. Second I feel the price is a bit on the high side.  Now discussing this with Brad his logic was the cost should be equal to the cost of one trade to buy the stock, which seems logical but I disagree.  For $20 I can often get an entire paperback book on a subject, so why would pay that for just one 14 page report and a spreadsheet?  Now the report is good with a lot of great detail, but I still would find it hard to buy it myself at that price.

So have any of you ever bought analysis research before?  What did you buy and what did you think of it?

Comments

12 Responses to “Investment Analysis Review on Coke”
  1. I nerver paid for a research report, ever. I might consider trying it for a few bucks ($1 to $3, certainly no more than $5), but that would probably have to be from someone I already know and whose opinions I respect.

    At $20 per report, that is way too expensive, particularly when you consider this. I believe that a wise investor should always look at more than one source of information when deciding whether to buy (or sell) a company. Multiples opinions and viewpoints are a good way to see more sides of existing issues and strength. If you have to pay $20 for 5 different sources of information, that’s $100.

    For that price, I might as well do the research myself.

  2. billst says:

    Why would i pay for your manuscript when you post everything on your blog?

  3. Nurseb911 says:

    Thanks for taking the time to review my Coca-Cola analysis CanadianDream.

    I appreciate the constructive feedback on the analysis and its pricing. I understand the price I charge can be viewed as a premium, but I also feel I’m offering a premium product and have priced it accordingly. Beyond the analysis of Coca-Cola there is a very large education component I’m taking readers through on how to assess a company from a fundamental perspective (both qualitative & quantitative). The business analysis in my view is the most worthwhile component.

    FoF: I agree that an investor should always consult a variety of resources before making any decision on an investment. I do offer a condensed version of the full analysis for free on my site which I still feel benefits readers on a budget. There’s still some really good information available to readers even if they don’t have the funds or desire to pay for the full report.

  4. Goalhunter says:

    You can pay $20 for a longer book in mass market, but for niche markets people normally pay more. He’s not going to sell 100,000 of his reports probably, but if you could arrange it I bet he would sell 100,000 for only $1 each. Anyway, I wouldn’t buy it either but I don’t berate his price.

  5. Canadian Dream says:

    Goalhunter,

    Good point the market is very tight, so perhaps Brad could sell it for more. Anyway I was just posting my thoughts on it.

    Billst,

    In a nut shell: the book won’t be a recycle of the blog. Actually I’m dumping in lots of new material into the book because frankly the material won’t work on a blog. I need a longer format to flush out some thoughts and concepts.

    So why the book? I have yet to find the book I want to help plan my retirement. I see parts I like in some books but nothing seems to have it all. So in the end I decided, what the hell I’ll write the book.

    Tim

  6. Cash Canuck says:

    You mention you can get a book for $19. True. But I find that most finance books (that IS what we’re talking about, right?) have one or two snippets of good information in a sea of words. One well known example is “Stocks for the Long Run”. The most valuable lesson can be garnered from the title… stocks are long-term investments, and if you are investing long-term, stocks are the best.

    I would be willing to pay more for a concise and to-the-point analysis than for a drawn out document waffling around the point.

  7. Ray says:

    If you are reviewing a stock and charging for it, then I’m pretty sure the bottom line is going to be “you should buy some”. How many reports end in the result that you should avoid the stock?

    Is the conclusion ever that you should short the stock? :) Interesting psychology.

  8. If you want to invest in specific companies, you should do your own research.

  9. Nurseb911 says:

    CashCanuck: That’s a very good point. Few investing books provide direct concrete information. The ones that do add value I hold in very high regard.

    Ray: Regardless of any stock I analyze I present a balanced analysis and fully disclose any/all positions.

    I analyzed GM in “The Ultimate Value Trap” and made a very strong case that the stock was going to $0.

    CanadianSmallCap: Great advice and something you rarely hear people advocating for. My SAML is essentially a stock analysis tool where I provide an assessment of the business model and evaluate quantitative data to give investors a balanced perspective. The difficulty is that reading a financial statement or knowing what important data to analyze leaves most new investors frustrated. Sometimes a learning tool is well worth the money when you have to go to 4-5 different sources and put the information together to gain the same effect.

  10. Rockon says:

    Thanks for taking the time to review,If you want to invest in specific companies, you should do your own research.

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