Existing users please login

 

Home / Markets / Industries / Retail

Coca-Cola Downgraded To Hold At Deutsche Bank

 
Simon Kennedy
MarketWatch Pulse
     

    LONDON -- Deutsche Bank downgraded Coca-Cola Co. to hold from buy, saying the company faces slower volumes at home and abroad as well as currency headwinds. The broker said it expects Coca-Cola to flag a tougher trading environment in the fourth quarter. It also questioned whether any U.S. bottlers or brand owners will benefit in the short-term by the likely 7% to 9% price increases indicated going into 2009. "Normally, following a year of disappointing volume growth, pricing is examined with a view towards volume improvement," Deutsche Bank said.

    Copyright © 2008 MarketWatch, Inc.

     

    Fox Business Video


     

    FOX Translator

    Detach

    No data currently available.

    No data currently available.

    No-Load Funds

    Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.

    The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.

    The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.

    But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.

    Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.