Coca-Cola Consolidated (COKE) Has Fallen 21% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Upslope Capital Management’s top stock picks. Upslope Capital Management, an investment management firm, is bearish on Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock. Coca-Cola Consolidated Inc. (NASDAQ:COKE) is the largest independent Coca-Cola bottler in the United States.

On July 15, 2019, Upslope Capital Management had released its Q2 2019 investor letter. Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock has posted a return of -20.9% in the trailing one year period, underperforming the S&P 500 Index which returned 13.4% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock has fallen by 15.9%.

In Q2 2019 investor letter, Upslope Capital Management said the fund posted a return of 7.8% in the second quarter of 2019, outperforming the S&P 500 Index which returned 4.30% in the same period. Let’s take a look at comments made by Upslope Capital Management about Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock in the Q2 2019 investor letter.

“New Short – Coca-Cola Consolidated (COKE): Coca-Cola Consolidated is not that Coke, but a much smaller bottler of Coke products (primarily in the Southeast and Mid-Atlantic). Our detailed thesis, released publicly on May 14, is available here. To summarize: COKE changed its name at the beginning of 2019 – notably removing the word “bottling.” We think the name change confused retail investors and, combined with a low-float, enabled COKE to more than double through mid-May. Our analysis of COKE’s fundamentals showed it to be a lackluster consumer staple business, with low returns, low growth and sub-par corporate governance. The stock fell ~20% from mid-May to the end of Q2. We remain short and believe significant downside still exists, as the stock was trading for >40x a very-low quality EPS (2019E) at quarter-end.”

The Coca-Cola Co (NYSE:KO), Bottle, Isolated, Coke, Cola, Drink, Nonalcoholic, Beverage, Popular, Sign, logo, Symbol


In Q1 2020, the number of bullish hedge fund positions on Coca-Cola Consolidated Inc. (NASDAQ:COKE) stock decreased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with COKE’s downside potential. Our calculations showed that Coca-Cola Consolidated Inc. (NASDAQ:COKE) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.