Panamco's PE is around 22, while Coca Cola's (KO) stands at nearly 55. Furthermore, the Fortune article noted on this thread from December, '97 notes that PB has higher growth prospects than KO. Some people are spooked about the world financial situation, and consequently have had a role in getting the price down; however, I believe too much is made of a possible crisis in South American currency and stock markets and believe this stock is a very good value, certainly at least compared to KO. It is the largest bottler in South America, and is the third largest KO anchor bottler in the world, has great management, and has sunk its roots in a hot, growing part of the world. I would not buy KO at these levels, but I am thinking of buying more PB.
What could justify the relatively low valuation of PB? Is there something I am missing?
All my best,
Osman. |
