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Strategies & Market Trends : WILL COCA-COLA ALWAYS GO UP? -- Ignore unavailable to you. Want to Upgrade?

To: John O'Neill who wrote (1086)	6/4/1998 5:00:00 PM
From: Brian Malloy	Read Replies (1) \| Respond to of 1462

I don't know if anyone can point to any single reason to explain why KO trades as it does. Below a list a few things, you really can not value much of it on a balance sheet but in terms of intrinsic value/goodwill most analysts would say that it exists. 1. The company has been around for over onehundred years now, it has a global presence/brand and franchise yet it has so much room to continue growing. 2. Coke is just plain beating PEPSI, not just in the US but more importantly overseas where PEPSI has just given up in many cases. 3. Earnings are somewhat flat due to Asia not the US and Europe where earnings are in fact growing faster than forcasted. I think all must remember that KO is just not in it for today but for the longterm, this is why Buffet has given KO his seal of approval. KO is using the weakness in China and other future high growth markets to buy expand and build up its sales and distribution network. This is the great thing about having deep pockets. When times appear bad and others are pulling back KO can grow at bargain rates. When things pick up and they eventually will, KO will be stronger and well poised to reap increasing benefits. 4. Lastly, in time of uncertainty people will often continue to hold or pay for companies that are believed to have stable earnings. When times are bad people may not be able to take the kids to Disneyland for a vacation or head out to the Opera and so forth, but they will still probably continue to enjoy a Coke while they go fishing or watch a sunset. As for me, one of the reasons that I don't post here in general is that KO is just a buy hold and forget stock for me. I'm in the drip and add to my position every month. I'm in for the long term and believe that 10 years, 20 years, 30 years hence from now I'll be glad I own it. I see myself passing it on to my future children through some sort of trust fund. I have had the opportunity to meet families that have passed on wealth through generations thanks to holding stocks like MO, ATT, GE, KO and others for the long term. Regards, Brian