Remember what makes this stock a Motley Fool Inside Value selection, Fool: It's broken. Growth has flattened in recent years. Operating cash flow growth has declined. But that's the fizz. Wait for the soda to settle. A peek under the ice cubes reveals that new-wave CEO Neville Isdell's investments are beginning to pay off through increased returns on capital:
| Period | Return on capital | Year-over-year gain (percentage points) |
|---|---|---|
| Q2 2006 | 27.1% | 1.6 |
| Q1 2006 | 18.8% | 2.3 |
| Q4 2005 | 14.8% | (0.9) |
| Q3 2005 | 21.1% | 1.7 |
Source: Capital IQ, a division of Standard & Poor's
Still sugary sweet
Next, let's address marketing. Both Seth and Rick are wrong in claiming that Coke's
Coke doesn't need to teach the world to sing anymore, guys. It just needs to get a few billion thirsty people to keep buying its drinks. Do you really want to bet they'll stop?
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Think you're done with the Duel? You're not! Go back and read the other three arguments, and thenvote for a winner.
Fool contributorTim Beyersenjoys a Coke most afternoons but didn't own the stock or shares in any of the other companies mentioned in this story at the time of publication. Get the skinny on all the stocks in his portfolio by checking Tim's Foolprofile. The Motley Fool'sdisclosure policyis like a cold Coke on a hot day.
