WILL COCA-COLA ALWAYS GO UP? Message Board

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

KO 71.65

+1.6%

Nov 11 3:59 PM EST

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To: zebraspot who wrote (1254)	9/24/1998 2:41:00 PM
From: Sonny	Read Replies (1) of 1462

I guess ... very difficult to let go of the old love for some folks :-) . The bottomline is: fundamental story has now changed for KO, at least in the short term (one, one-and-half years). No growth, so may be 25 PE would suffice, no? That gives the price in the early-mid forties. (that is when we give almost double PE of 25 for the brand recognition say, for a soft-drink company, than the norm for a less well-known enterprise in the industry). Three significant risk factors in the very short term (Oct-Nov) imho are: possible Oct-market downturn, any news item to the effect if/whether Berkshire Hath. has reduced its KO holdings recently, and some other excellent beaten down growth opportunities available in the market today for new money to invest in, where you have a PE of 7 and growth of 35% for example ... but for KO, I think sentiment has drastically changed recently. Remember the other day MER's 12-month price target was only 62 or so ... so the risk/reward ratio for KO has significantly increased at this juncture. All imho. regards to all, -/Sonny.

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