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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gambler who wrote (33457)	10/6/1998 9:50:00 PM
From: Squidman	Read Replies (1) \| Respond to of 132070

Gambler& MB , I also have been wondering about CCE. I'm a little perplexed why a bunch of analysts upgraded it after it dropped from the 40's. I assume they think it's "cheap" now. But it still looks way over-valued to me. It looked ready to drop again last week and I had some of those cheap puts. But then it was announced that CCE was going to join the S&P 500 and its been going up ever since. It looks like a great opportunity to buy back my puts but I'm uncertain about the timing. Can anyone tell me how joining the S&P usually effects a stock? Am I right in assuming that much of the buying now is from index funds? Do those funds usually try to buy a new index member before it joins the index (after the close on Oct 7, I think)? Or does the buying persist for sometime after? Squidman

To: gambler who wrote (33457)	10/7/1998 12:17:00 AM
From: Knighty Tin	Respond to of 132070

GAmbler, The bottling company has been a favorite of some of the putters on this thread. I have played KO with a short sale that is just about breaking even now, but have avoided Enterprises for no particular reason. I think it is a decent put stock with only two caveats: 1. KO owns a chunk and you never know exactly what that could mean if the stock goes down enough. In other words, there may be a safety net at some level. 2. It has already declined quite a bit. Now, the same could have been said for Citicorp at $140, and I said it, but it didn't stop me from rolling my puts down. Over the past 7 years, KO has gone from a premium priced stock to a silly bubble stock. The company is still an excellent one, though the death of the genius CEO cannot be overcome. You can teach certain things, but you can't teach brilliance. Lord knows I try. <VBG> Even now, after falling so far, you have a stock selling for 36 times eps with a growth rate near 12% if everything goes well and no dividend to write home about. Financial strength is superb, but you need more than that. I still like KO for the downside, though I have had calls from brokers telling me how "cheap" it is here. Correct that. I like it for the downside because of those calls. <G> MB