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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: linda k who wrote (698)6/15/1997 3:30:00 AM
From: wooden ships   of 42834
 
Brinker made quite a fuss Saturday about Coca-Cola Co. and the
application of the "greater fool" theory to this stock. Brinker does
not intimate Coca-Cola stock can not move to higher levels, but it
was evident he thinks that Coca-Cola, selling at 47x earnings, is
pushing the envelope, to put it mildly. To recall it, Brinker
calculated the market capitalization of the sugar, water, and
flavoring company at about $175 billion, thus making it one
of the world's largest.

Though Brinker does not favor options, I found myself thinking-
perhaps, speculating is the better word- about whether it might
make sense to consider long term put options on Coca-Cola.
Or is the market discounting all those hundreds of millions of
Chinese yielding to "the pause that refreshes."
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