May 2012

With the recent addition of Ford Motor Company to offered SIF stocks, current news will begin to include the automobile industry. Beginning in 2008 the automobile industry began to fail. We saw major losses during the recession and both GM and Chrysler declared bankruptcy. Currently, it looks as though the industry, including Ford Motors, has recovered and is looking forward to robust growth.

“Autos have had their strongest performance this year since early 2008, with purchases exceeding a 14 million annual rate in each month of 2012 so far.” This growth is also revving up the entire economy. According to government data, half of the growth in the entire US economy during the first quarter of 2012 can be attributed to the automotive industry.

While the industry wide decline hurt Ford Motors, it did not force them into bankruptcy like many of its competitors.  This bodes well for Ford, demonstrating that it may be in a good place to withstand future hard times. With the economy recovering, and automotive companies leading the way, now might be a great time to invest in Ford Motors!

April 2012

Have you ever tried Coconut water? Coca-Cola thinks you should. Last week, Coca-Cola Bottling Company announced it had acquired a majority share of Zico, making it the primary owner. Zico is the second largest international brand in the coconut water business, an estimated $350 million industry.

Some investors think this is a fantastic purchase for Coca-Cola. The Coconut water industry has seen vast growth over the past few years and is currently being marketed as an alternative and healthier sports drink. John Craven, founder and CEO of BevNet, a beverage publisher, says “roughly 3 in 10 new beverages coming to market today have coconut water as a component.”

 Other Investors though have mixed thoughts about this new endeavor.  Pepsi Co., a leading competitor of Coca-Cola has already entered the coconut water industry. After introducing the ingredient into several products, Pepsi decided to pull the plug and backed away from coconut water because it apparently lacked profitability. Some skeptic Investors are wary Coco-Cola may be heading toward a similar fate.

With such a risky project being undertaken, Coca-Cola stock looks to be making major moves either up or down over the next few years.