Coca Cola Enterprises (CCE) announced new guidance and watched their stock sell off. John F. Brock, chairman and chief executive officer is quoted as saying “We operate in markets with proven growth profiles and excellent potential for the short and long-term.”
Bottling is a capital-intensive business. The money is in the syrup. Guidance was issued without a balance sheet forecast or comment. When they leave out the balance sheet …. well I’ll let investors come to their own conclusions about how the cost of capital is to be recovered.
Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.
- Coca-Cola Enterprises sticks to 2010 view (marketwatch.com)