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Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP?
KO 68.68+1.0%3:59 PM EST

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To: taxman who wrote (1388)9/29/1999 11:07:00 AM
From: Jon Stept  Read Replies (3) of 1462
 
taxman, re:Coke's PE...

Hi taxman,

Thank you for that article.

I also wonder why the PE is so high. The only point that I can make that was not mentioned in the article is that possibly the market measures this stock on something other than the immediate forward earnings. Coke is viewed as a pillar of earnings stability, one of probably the most recognized brand name in the world, and real or not, it would take over-the-top news to alter the perception, and I think this dip in Cokes performance is seen by many as something temporary. This continuing long dip is not enough to change the markets long term perception of this stock.

This phenomenon may also indicate selling is met with buying at each point.... lots of long, long term funds with Coke at their core, and these funds see only good things ahead.

At least that is my theory and opinion. Curious to hear yours, if you want to.

Jon :)
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