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

To: Jan Garrity Allen who wrote (1308)	11/28/1998 6:51:00 PM
From: Bob Linhart	Respond to of 1462

Coca Cola's growth has slowed down to somewhere around 3%. With all the economic problems in Russia, South America and the Far East I'll be surprised if they show any growth in the near term. The P/E of ko is about 48. That's about 2x the S&P multiple. This just doesn't make sense to me. The company has been guiding earning estimates down. I know they make a great return on equity. But 48 times earnings seems ridiculous to me.

To: Jan Garrity Allen who wrote (1308)	11/29/1998 9:51:00 AM
From: Curtis Frazier	Read Replies (2) \| Respond to of 1462

I'm not trying to bait anything. I own KO through their DRIP plan so I will only lose with KO goes down, but the company isn't looking too good now. Since KO is a global company an economic slow will hurt it. I wonder if the new CEO has the same vision as the older one. Even Buffet hinted that the stock is pricey. These are some legitmate thoughts. If KO does go down, I'll just buy more shares cause the company isn't going out of business and the dividends will keep going meaning over time my cost basis will go down. I have about a 35 year horizon for this stock. I'm 30 years old. Hey, if I decide to 'will' it to my children, we may be looking at an even longer horizon. Then again, what if the company falls and can't get up. That's another problem. Probably the only way I'll sell the stock is if they decided to cut back on dividends, then that will represent a major problem and all bets are off.