To all: KO could be over-priced, however, it is now down from $70. Keep in mid that Warren Buffet owns approximately 10% of the company, and he is not selling (probably never will). Moreover, KO will continue the massive stock buy back program. Also KO is part of the S & P 500, and the Dow jones 30, which means all of the index funds must own the stock. If you were lucky to short this stock at $70, I would cover while you can. This is not a good short in the $50 dollar range.
Shorting stocks is a very risky business in general, I would not compound the mistake by shorting KO. There is simply to much demand for the stock (Buffet, KO, index funds), and a shrinking supply.
The rising US dollar, up 22% against most currencies in the last year, resulted in lower earning for KO last Qtr. Did you notice the volume gains!!!! KO is as strong as it has ever been.
In summary, you make money shorting worthless stocks, not the blue
chip stocks. |
