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Technology Stocks : Is Intel a $100 stock next year
INTC 40.16-2.9%Oct 30 3:59 PM EDT

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To: Ira Vine who wrote (4)2/10/1996 6:18:00 PM
From: maven2010   of 58
 
First of all, Coke does not have a multiple of 40.
They have a trailing PE of around 32. I agree that this valuation
is a bit high. But look at Coke over the last 10 years. They
produce *consistent* year over year, quarter over quarter,
high teens growth in earnings. They are led by one of the most
visionary CEOs of our time. They have no debt, LOADS of cash, and
consistently buy back tons of shares each year. They are most
recognized brand name in the world, and the greatest investor of
all time (Mr. Buffett) likes them so much he has publicly stated
that he will *never* sell his shares. Over the last 10 years,
Roberto Goizueta has created something like 9.00 in shareholder
value for every 1.00 of retained earnings (shareholder value defined
by change in market cap). So you can see there are reasons for Coke's
lofty valuation.

That being said, I have recently been a seller of Coke and a buyer
of Intel! :)
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