Greenpeace accuses Coca-Cola of adding to pollution

Coca ColaThe stock price of Coca-Cola Company (NYSE: KO) moved to a high figure of $42.84 in the last week because of higher than anticipated earnings and revenue. The increase in prices of the stock was further aided by the organic revenue growth outlook between 3 to 4 percent in the fiscal year 2017.

Although the news seems to be promising for the company we discourage our readers and other traders from investing in the stocks of Coca-Cola.

We are expecting that the stocks of the company will remain bearish in the short period.

In a report published last week, Greenpeace has made a statement that the food and beverage giant sells approximately 100 billion thrown away bottles every year which in turn causes a tremendous amount of litter problem and pollution to the environment. According to Greenpeace, around 15 to 16 million plastic bottles are adding up to the garbage every day.

Coca-Cola

The organisation has accused the beverage giant Coca-Cola that it does not meet its recycling target. The company is nowhere near the target to recycle 75% of its bottles it sells in the developing countries by the year 2020. According to a recent assessment, there is a decline to 59% in the recovery and recycling percentage in 2015 from a figure of 63% two years ago.

The campaign group believes that it is an alarming situation and single-use plastic bottles constitute more than 60% of the global packaging of this Georgia-based company. Coca-Cola has also failed to reach the target of sourcing 25% of the requirement of plastic bottles from recycled and renewable sources in the year 2015. According to Greenpeace, the most critical thing Coca-Cola has failed to provide is an update regarding reaching the global recycling target.

In an endeavour of the company to simplify the choices of customer between sugar and sugar-free version, Coca-Cola has decided to pull Coke Life, which is known for its green packaging from the United Kingdom shelves in June. The decision was prompted after the flat sales last year. There is a decline of 58% in the sales of this low-calorie drink (which is sweetened with plant extract stevia) to a figure of .8 million pounds in 2016. This news can keep the stocks of the company under a lot of pressure.

The stocks of the company are facing a massive resistance at 42.70 which is visible from the chart below. According to MACD indicator, there is a negative divergence with the movement in price. This indicates a possibility of price correction. So, we can easily speculate downtrend for Coca-Cola.

Coca Cola Stock Price April 12th 2017

Coca Cola Stock Price April 12th, 2017

As a binary trader, you can gain from the decline of stocks by investing in a put option or similar contract. You can BUY the Binary Option contract when the stock is trading near $42.50 on NYSE. You can boost the chances of success in binary trading by selecting an expiry date around 20th of April, 2017.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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