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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (33432)	10/6/1998 8:09:00 PM
From: gambler	Read Replies (3) of 132070

Mike, I have the utmost respect for your opinion and was wondering if you had a minute to take a peak at Coca-Cola Enterprises (CCE). I am seriously eyeing it as a put candidate. To me it looks grossly overvalued, but heck, what do I know? I love the cheap premiums on the puts, where a 2 1/2 pt drop represents a double and a 5 pt drop is a 5-bagger. At 27 13/16, it has a PE of 73, with trailing 12 months EPS of .38. Predictions on Yahoo show estimates at .25 for '98 and .28 for '99, giving this a PE of 111 against '98 earnings and a PE of 99 against '99 earnings estimates. Book value sits at $5.96. It shows financial weakness with a current ratio of .70 and a debt-to-equity ratio of 3.71. Every direction I look at this stock I see a dog with fleas. Although it has already taken a bit of dive from the low 40s mid-July to its current price, it seems that fundamentally it has a lot more room to fall. Am I missing something? While we are on the topic, if you could include KO in your analysis too. They seem to move together, for obvious reasons. I've been eyeing KO for puts too. Thank you in advance for your input. Gambler

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