So I was looking at long term coke stock history and found that there was a devastating plummet in 1998, after which it took almost 20 years to recover back to $43.59. Does anyone know why that happened? It's like coke stock fell off a cliff, but I'm having a hard time tracking down the reason why.
Coke Stock Plummet
Lucas Flores
Brayden Lee
The company struggled with bloated costs, management upheaval, and a loss of focus on its core product, soda.
Andrew Davis
>The stock's $87.94 high-water mark on July 14, 1998, still haunts company headquarters in Atlanta. The five-year decline that brought shares to $37 in March 2003 reflected the turmoil within, as the company struggled with bloated costs, management upheaval, and a loss of focus on its core product, soda pop.
bloomberg article
Logan Torres
oh shit
Dominic Clark
...
Brody Diaz
Such a pathetic reason to lose shareholder value.
That being said I feel like there hasn't been a good corporate mismanagement scandal in a while, but it almost feels like apple might be heading in that direction soon.
Hudson Russell
It was overvaluation, not mismanagement.
Profit and management issues were minor compared to the unsustainable 50 P/E mentioned in . Note that this was when you could get 5-6% interest rates on Treasuries.
When P/E for such a huge company gets that bloated, the next 10-15 years are going to see either a drop (Coke) or stagnate until the earnings catch up (look at a chart for Wal-Mart for instance).
Isaac Powell
Ahh. I remember reading about this in Warren Buffett's biography 'The Snowball'. Roberto Goizueta, Coca-Cola's CEO, died in 1997 due to lung cancer. Douglas Ivester was named CEO. Within 3 years, he was out. Why? Earnings declined due to a stronger US Dollar from the fallout of the Asian Financial Crisis. Ivester was ambushed by Buffett and Herbert Allen during a trip to Chicago meeting with McDonald's executives.
Adam Hughes
they got their shit together
now warren buffett is all in on coca cola
Julian Brown
>coke
Here I am googling coal prices and coal derivatives, and you mean coca-cola company stock.
Be more vague, why dont you.