According to a report by El Cronista newspaper on Friday, Coca-Cola Company (KO) is considering the withdrawal of part of its $1-billion investment in Argentina, as the countrys government intends to propose a tax raise on soft drinks. The proposal is to be presented to Congress today.
Coca-Cola shares closed higher for a fourth consecutive trading session on Friday. The stock went up 0.67% ($0.31) to $46.54, after touching an intraday high at $46.64, or a price level not seen since October 26th ($46.75).
In the week ended on November 12th the shares of the beverage company added 1.24% to their market value compared to a week ago, which marked the first gain in the past three weeks.
The stock has extended its advance to 1.22% so far during the current month, following a 2.16% surge in October. The latter has been the first gain out of three months.
For the entire past year, the shares of the NYSE-listed beverage maker lost 3.49%. However, the stock has rebounded 12.25% so far in 2017.
El Cronista also reported that the US-based company was planning to discontinue purchases of concentrated juice from citrus producers in Argentina.
The proposal to increase the sales tax rate on soft drinks from 8% to 17% is a part of a larger tax reform presented by Argentine President Mauricio Macris administration last week. It envisages a considerable cut in corporate income taxes, which will be offset by a raise in taxes on some consumer goods.
It was in January last year, when Coca-Cola pledged to invest $1 billion over four years in the South American country.
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Coca-Cola’s stock price, have a median target of $48.00, with a high estimate of $55.00 and a low estimate of $41.00. The median estimate is a 3.14% surge compared to the closing price of $46.54 on November 10th.
The same media also reported that 15 out of 27 surveyed investment analysts had rated Coca-Cola’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the Coca-Cola stock are presented as follows:
R1 – $46.59
R2 – $46.63
R3 (Range Resistance – Sell) – $46.68
R4 (Long Breakout) – $46.82
R5 (Breakout Target 1) – $46.98
R6 (Breakout Target 2) – $47.05
S1 – $46.49
S2 – $46.45
S3 (Range Support – Buy) – $46.40
S4 (Short Breakout) – $46.26
S5 (Breakout Target 1) – $46.10
S6 (Breakout Target 2) – $46.03
By using the traditional method of calculation, the weekly levels of importance for Coca-Cola Company (KO) are presented as follows:
Central Pivot Point – $46.16
R1 – $47.02
R2 – $47.49
R3 – $48.35
R4 – $49.20
S1 – $45.69
S2 – $44.83
S3 – $44.36
S4 – $43.88
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