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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: Dulane U. Ponder who wrote (1284)10/9/1998 12:58:00 PM
From: Paul Shread   of 1462
 
DP,

Actually, KO has warned twice in the last 15 months, as I'm sure you are aware, so I would count that as a miss. And it's never missed in the 90+ years it's been public? I can't believe that. What is the historical range for its valuation (i.e., PE range of 12-65, where's the average)? I like the company, they've done a good job managing through crises, but it is overvalued by 100%, so why not wait a couple of years to buy it? Who knows what will happen to markets and the economy in that time? I'm not hoping for disaster, just trying to invest wisely.

Paul

P.S. One of the findings of Jeremy Siegel's study of the nifty fifty from 1972 is that stocks with PEs lower than 30 generally outperformed the S&P over the next 25 years, while those with PEs greater than 30 did not.
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