COCA COLA BUYS COSTA COFFEE:<\/h3>\n
On Friday August 31, Coca Cola (NYSE:KO), – the soft drinks giant – ,\u00a0announced that it is buying the Costa Coffee chain, for a \u00a33.9 Billion deal that underlines the scale of the global coffee revolution.<\/p>\n
The takeover will turn overnight Coca-Cola\u00a0into the UK\u2019s biggest coffee shop player and give it a foothold in what is one of the world\u2019s fastest-growing drinks categories. The global coffee shop market alone is worth US$165 Billion.<\/p>\n Costa Coffee\u00a0is a British\u00a0multinational\u00a0coffeehouse\u00a0company headquartered in Dunstable, Bedfordshire, and a wholly owned subsidiary of Whitbread (LSE: WTB), a FTSE-100 component.<\/p>\n It is the second largest\u00a0coffeehouse\u00a0chain in the world, and the largest in the UK.<\/p>\n Alison Brittain, the chief executive of Costa Coffee\u2019s owner Whitbread<\/p><\/div>\n Alison Brittain, the chief executive of Costa Coffee\u2019s owner\u00a0Whitbread, said the coffee chain had been approached by a number of potential buyers but Coke\u2019s desire to snap up the 4,000-store chain was a \u201cdream deal\u201d for investors.<\/p>\n On Tuesday, August 28, the Board of Directors of Scotiabank (BNS.TO) announced\u00a0a quarterly dividend increase from CA$ 0.82 to CA$ 0.85 per share that\u2019s payable on October 29, 2018 to holders of record October 2, 2018.<\/p>\n This represents a 3.66 % increase from prior dividend. It should be noted that this is the second dividend increase in the current calendar year as it was also raised by CA$ 0.03 in February 2018. So the increase in this calendar year is CA$ 0.06 or 7.59% from the last dividend paid in October 2017.<\/p>\n With its closing price of CA$ 75.53, of Friday, August 31, this raise brings dividend yield of the company to 4.49 %.<\/p>\n This deal that sets up Coca Cola as the world\u2019s biggest beverage maker to take on Starbucks, Nestl\u00e9 and JAB Holdings in the global battle for coffee sales.<\/p>\n Hot beverages is one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand.<\/p>\n For this reason, this deal represents a leap into the global coffee market for Coca Cola, where it has little presence, allowing it to diversify away from fizzy and sugary drinks, which have declined in popularity among increasingly health-conscious consumer.<\/p>\n Based on the above we maintain our BUY rating on the shares of Coca Cola.<\/p>\n Bank of Nova Scotia, is the\u00a0third largest bank\u00a0in Canada by deposits and\u00a0market capitalization and has a history of uninterrupted dividend payments dating back to the year 1833.<\/p>\n On Tuesday, August 28, the company said that its earnings per share, excluding one-off items, rose to CA$1.76 (US$1.35) from CA$1.68 a year ago in the quarter ended July 31.<\/p>\n Net income, excluding one-off items, rose to CA$2.26 billion ($1.73 billion) during the period, from CA$2.12 billion a year ago.<\/p>\n The bank\u2019s international business grew net income by 15 percent, helped by loan growth of over 10 percent in the Pacific Alliance region comprising Mexico, Peru, Chile and Colombia.<\/p>\n Scotiabank, which has the biggest overseas presence of Canada\u2019s major banks, is focusing its international strategy on the Latin American trade bloc.<\/p>\n Based on the above and the fact that the company’s shares are trading right now at a very low P\/E ratio of 11.20, we maintain our BUY rating on the shares of the company.<\/p>\n I\/We don’t own shares of Coca Cola, but are long the shares of Scotia Bank.<\/p>\n Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration and keep in mind that; share prices don\u2019t move in a straight line, that Past Performance Is Not Indicative Of Future Results.<\/p>\n Yours sincerely,<\/p>\n Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":" Dear PGM Capital blog readers, In this weekend blog edition,\u00a0we want to discuss some of the most important events that happened in the global capital markets, the world economy and the world of money, in the week of August 27, 2018, as follows: Coca Cola buys Costa Coffee. Bank of Nova Scotia increased its dividend[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":17673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-17654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=17654"}],"version-history":[{"count":26,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17654\/revisions"}],"predecessor-version":[{"id":17687,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17654\/revisions\/17687"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/17673"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=17654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=17654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=17654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/09\/3500.jpg\")
<\/a><\/p>\nAbout Costa Coffee:<\/h4>\n
<\/a>SCOTIA BANK HIKES ITS DIVIDEND:<\/h3>\n
<\/a><\/p>\nPGM CAPITAL’s COMMENTS & ANALYSIS:<\/h3>\n
Coca Cola – Costa Coffee deal:<\/h4>\n
<\/a><\/p>\nScotia Bank increased its dividend:<\/h4>\n
Disclosure:<\/h4>\n
<\/a><\/p>\n