🌎Coca Cola stock pumping hard

Market summary for busy people

Hello Seven Lakers,

here's what you need to know for November 9th

TODAY’S BIG STORIES

1/ Coca Cola’s stock is bouncing from shadowlands on top of positive results

2/ Blackrock is investing in air cleaning technologies

American multinational beverage giant Coca-Cola’s (KO:US) stock bounced hard (+9% vs. October’s lows) due to positive quarterly results, after reaching its 12-month low in October

From July to October 2023, Coca-Cola’s (KO:US) stock went down -20% reaching a 12-month low of around $52 following broader market sentiment
But the company announced its quarterly results on the 24th of October and posted a beat on both EPS and revenue
Despite the inflation and tough macroeconomic environment, people have not stopped consuming their products: all of their drink divisions reported growth in volume

Bigger picture

Consumers’ preferences on Coca Cola are not impacted by incoming recession and inflation
Coca Cola seems very resilient across business cycles and good dividend stock to accumulate, especially when has been sold off a lot similarly to the July-October 2023 period

For markets

When Coca Cola’s stock was going down, some investors started arguing that their position was actually weaker than Pepsi in a downturn, as Pepsi boasts a more diverse portfolio of products and better growth numbers vs. Coca Cola
Clearly, Coca Cola’s 137-year-old legacy is intact and the sellers have been punished: the stock went up +9%

Political trading

In July-October 2023 period, when Coca Cola was being heavily sold, the politicians joined in
Most notably, Pete Ricketts sold a massive $100,000 to $250,000 worth of KO stock
- It was a timely sale that came just before the dip to a new 52-week low.
His fellow lawmaker Katherine Clark wasn’t that fortunate with the timing of her sale.
- She just disclosed the sale of $15,000 - $50,000k worth of Coca-Cola stock
- Her selling price was $52.88, just before the stock rose +9%; the transaction had ‘panic sell’ written all over it.

Largest investment fund in the world BlackRock (BLK:US) is set to invest $550 million in Stratos, the world's largest direct air capture (DAC) project developed by Occidental Petroleum (OXY:US)
Occidental Petroleum, a significant U.S. oil company is working towards reducing its carbon footprint with backing from Warren Buffett's Berkshire Hathaway (BRK:US), its largest shareholder
BlackRock's investment comes through its fourth global infrastructure fund indicating growing investor confidence in climate-related projects

Located in west Texas, Stratos aims to remove carbon emissions from the atmosphere using DAC technology, contributing to global decarbonization efforts
BlackRock's substantial investment in the Stratos project highlights the finance industry's shift toward sustainability and the global commitment to combat climate change effectively

Bigger picture

DAC technology removes CO₂ emissions from the air, offering versatile applications like capturing and storing atmospheric CO2 and its reuse in various industries
The International Energy Agency recognizes its potential in achieving global net-zero goals

For markets

Stratos targets an annual capture of up to 500,000 tonnes of carbon and is 30% complete with commercial operations scheduled for 2025
The U.S. Department of Energy's $1.2 billion grant supports DAC developments, aligning with the Biden administration's push for economic decarbonization
DAC will be critical technology for the future, and Blackrock is positioning itself on the opportunity
Could be a good practice to screen other companies with DAC technologies as they might become attractive as more investment funds are shifting to sustainability

Political trading

In the first half of 2023, several lawmakers engaged in the sale of their BLK stock holdings. In July and August, Rep. Ro Khanna strategically acquired stocks, contrasting with Sen. Dan Sullivan's disposition of shares in August. Moving forward into September and October, Sen. Markwayne Mullin made a notable purchase in BLK shares.
In 2023, the sole lawmaker who executed transactions involving OXY stock was Sen. Tommy Tuberville
- He acquired OXY shares in May within the price range of $15,000 to $50,000 and subsequently sold OXY stock in both April and May.

How to be notified when politicians buy / sell stocks

As seen before, some suspicious trades were made by Congress Members and their relatives

However, the GOOD NEWS is that their moves can be copied (politicians need to disclose their stock positions)

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