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Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP?
KO 71.24+0.8%3:59 PM EST
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To: Keith Fauci who wrote (893)3/14/1998 4:19:00 PM
From: Dulane U. Ponder   of 1462
 
You are assuming, Keith, that coke will pullback to those prices. Although, it seems everything is aligned for a pullback, don't underestimate the role of perception in keeping the stock price aloft. I sold covered calls, assuming that there would have to be some kind of drop in share price. But now I learn that money and fund managers are snapping up coke just because they feel that it is so predictable in performance and earnings growth. For example, in april's smart money reads as follows:

As for coca-cola, it may be selling at 34 times estimated 1999 ernings, but it is cheap in terms of 2005 earnings. I feel highly confident in projecting Coke's results out that far because it has been a tremendously consistent performer -- 7 or 8 percent annual revenue growth and 17 to 18 percnet annual earnings growth. True, the stockmay dip in the near term if South America succumbs to the Asian financial flu. But the long term is rosy with Coke's superb brand name, its excellent relations with bottlers and with its chief rival, Pepsi, backing off from head-to-head competition in many markets.

From an article written by Edwin Walczak: Vontobel USA

I expect coke to move as the Dow moves which may head lower after 1st Q earnings. dulane
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