WILL COCA-COLA ALWAYS GO UP? Message Board

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Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP?

KO 72.98

+2.5%

Nov 21 9:30 AM EST

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To: BAXTERBOO who wrote (761)	11/24/1997 5:03:00 PM
From: taxman	of 1462

COCA-COLA CO. (KO) 63 3/16 -9/16: Not exactly in the news today, but a pretty good representative of what has been happening lately. Coke shares have come off their all time high of 72 5/8, after warning August 7 and then reporting October 16 that third quarter earnings came in at $0.41 a share, just $0.02 above year ago levels. This 5.1% gain in earnings occurred while the stock was trading in a narrow range near 58, putting the trailing 12-month p/e at a mere (for it) 35. Since then, the stock has traded back up to 63 as investors have been willing to buy KO and other beaten up stocks despite the Asian turmoil. The p/e is now back up to 39. However, even somewhat better earnings growth going forward may not be enough to provide much further upside to this highly valued stock. Current consensus estimates call for KO earnings to grow just 4% in 1998. With such paltry earnings growth likely, and a p/e of 39, the stock bounce off tis lows may prove merely to be a correction to the oversold condition, rather than the start of a sustained move upward. Chart c Copyright 1997 E*TRADE Securities, Inc. All Rights Reserved. Copyright c 1997 Charter Media, Inc. All rights reserved. of course Current consensus estimates calling for KO earnings to grow just 4% in 1998 could be wrong. after all earnings have grown by 18% over prior 10 years. regards.

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