Moodys Investors Service's ratings belie the
amateur analysts on this board who are spreading nonsense
concerning unmanageable debt levels, KO's demise, etc. Read
Notice the second and third paragraphs:
upgrades are based on CCE's increasing importance as the
largest U.S. and international bottler in the Coca-Cola
system and Moody's expectation that the already close
strategic alignment between CCE and The Coca-Cola Company
(KO) will continue to strengthen."
expect that the Coca-Cola system - which includes KO and
its global bottling affiliates - will maintain an
extraordinarily powerful brand franchise, increasingly efficient
marketing and distribution capabilities, strong cash
generation, and ample financial flexibility."
faith, KO supporters! The bear noise will be subsiding
as time goes on.
I've bought KO at $55 three times in the past few
years,the first when the DOW was down 500 points.The last
time was last week.
The first time I sold at
$75,the second at $65 and this time....who
One thing I notice from before was the gloomy posts
at the time I bought.Then once the buying started,it
was like everyone was dog piling on KO at once before
it went higher.
I don't know if I have a
point but KO isn't going away,thats for damn
$55's been good to me with this one and slowing
sales,competitive bashing manuvers or KO taking a quarter to write
off any bad currency losses is just the chances I
look for when investing with this one.
been sideways quite some time and don't forget KO buys
back stock when it gets cheap.
A 32 PE is
average as someone wrote,but sooner or later the rush to
buy KO will again start and it happens fast and when
things look their worst.
try at $55. Finding a pattern and taking
advantage of it is great but this time it may be a little
KO's average PE is around 32 but its current PE is 42.
With flat profits, the stock might dip
What the heck, you have made money in the past doing
this and even if the stock goes lower, at some point
it will go higher.
KO for so many years, unless the shares are in a
tax shelter, you will have to give Uncle Sam about
18% of your gain. I'm pretty sure you know
Many people say that the tax tail should not wag the
investing dog but I do think you have to consider the tax
As for the next five years, at some point
KO's earnings will turn around and the stock stop
falling at that point. What none of us knows is when that
will happen and if it will happen before the stock
goes much lower. At some point, if the stock continues
to slide, there will be a point where investors
begin to dump their shares. None of us knows where that
point is or if the stock will hit it.
What I do
know is this. Over the past five years, KO's average
PE has been 32 and it now is 42. By this measure,
the stock is over-priced. The down-side risk is still
high. What is different now is that the earnings are
under pressure and they weren't when the PE was lower.
The company had a lower multiple when it had earnings
growth. This is not good for any current holder of this
The decision is yours and I wish you well. I hope
that I've given you something to think about.
until the charts show it.
Today, it was up
a little but tomorrow it may be down a little. The
trend, at this time, is down. How did you determine that
the bottom has been reached?
What I hate bout
charts is that they make perfect sense when looking at
the past but I do not feel they predict the future.
Many investors do try to predict future moves with
present charts but I fail to see the cup and handle that
It sound like you own the stock. I
wish you luck. The bottom may be here, I just do not
in December of 1998. If anyone is interested,
read post 11027 and post 11028.
I think that my
posts of that time make it clear that KO was warning
investors of its problems and that many KO investors
ignored these warnings.
I hate to see KO getting
kicked around when the company went out of its way to
tell the investment community what was happening.
One more thing, check next to the By: and see that
the ogden391 has a number one and not a lower case L.
I did post those messages.
You seem to be the person that is most in the
know on this board. I was wondering if you could give
me some advice. I am interested in starting a
position in KO. Is this a good time?
the best time to buy a stock is. What I do know
is that KO stock is under pressure, is 10 PE points
above its five year average and has declining
I also want to buy the stock but I am waiting for
one of two things, the PE to drop to the market
average which is around 20 or for profits to improve.
For me, this is a time to watch and wait. Even if I
pay a little more for the stock in the future, my
risk level will be lower. In truth, I expect to get in
at a lower level but time may prove me wrong on
"What I do know is that KO stock is under
pressure, is 10 PE points above its five year average and
has declining profits."
The REASON the PE is
higher than the five year average IS declining profits -
the "E" in PE. You will often see the HIGHEST PEs
near the earnings trough (ala Japan). This is the time
you BUY - not sell - IMO.
When the investments
made by KO for the long-term continuation of its'
global dominance start paying off, the PE will drop and
the price will rise. Problem is, it will be too late
for the Johnny come latelys to get aboard.
>>When the investments made by KO for the
long-term continuation of its' global dominance start
paying off, the PE will drop and the price will rise.
can they keep it
...can they keep it rolling wihout lowering prices to
consumers..(deflationary economy?) and/or if they must cut prices can they
cut costs faster...and at what level might the game
be over....or is a P/E of 100 reasonable for a
"dominant new growth" co.....
"...can they keep it rolling wihout lowering
prices to consumers..(deflationary economy?) and/or if
they must cut prices can they cut costs faster...and
at what level might the game be over....or is a P/E
of 100 reasonable for a "dominant new growth"
Did you see the trade deficit numbers this AM? A new
record high vs. an expected drop. Did you see the dollar
continue its' tank job against the currency of the world's
second largest economy? NO ONE produces their beverage
more efficiently than KO. Therefore, NO ONE can cut
prices without producing losses. Further, the tanking
dollar is music to KO shareholder ears! You do know that
KO has a 33% market share in China (where they have
FIVE TIMES as many people as we do? You do know that
China only has (7) eight ounce servings annually per
capita vs. 149 for Japan and 395 for the US? I smell
some mondo growth opps in China.
Just look at
the acceptance of KO in Mexico where there is 412
servings per capita (more than the US even) where KO has
invested heavily. Granted the water sucks in Mexico which
helps, but there is going to be serious growth coming
out of China. If KO merely got China up to 1/2 the
per capital use of the US and Mexico and grew NO
WHERE else, the stock would be a BARGAIN here.