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The Coca-Cola Company Message Board

  • mycrof4 mycrof4 May 7, 1998 6:22 AM Flag

    INTERST RATES GOING LOWER= KO GOING HIGH

    DEAR FELLOW SHAREHOLDERS,

    THERE WAS A
    MAJOR ANNOUNCEMENT WEDNESDAY BY THE
    TREASURY
    DEPARTMENT WHICH SHALL IMPACT THE MARKETS CONSIDERABLY
    TO
    THE UPSIDE AS INTEREST RATES FALL. THE FALL WILL MAKE

    BORROWING CHEAPER FOR COMPANIES LIKE KO AND THUS
    PROFITS
    GREATER. THE STOCK MARKET STILL HASN'T REALIZED IT YET,
    BUT
    WHEN IT DOES WE WILL GO HIGHER. HERE ARE SOME
    EXCERPTS FROM
    TODAYS WALL STREET JOURNAL
    ARTICLE:

    The Treasury Department announced a major
    restructuring of its plans to
    sell short-term government
    securities, the latest sign that the era of budget

    surpluses is reshaping debt markets and the
    economy.

    After this month, the Treasury will stop issuing
    three-year notes, sold since
    1976. And after next month,
    it will cancel the monthly auctions held since

    1991 for five-year notes and sell them quarterly
    instead. The changes
    allow the Treasury to boost the
    size of other auctions while still reducing
    the
    total amount of money it borrows.
    Prospects for a
    budget surplus for the fiscal year ending Sept. 30 --
    the
    first since 1969 -- and rising expectations of
    government black ink into the
    foreseeable future present
    a new backdrop for the Treasury. Wednesday,
    the
    Congressional Budget Office projected that the surplus will
    be
    between $43 billion and $63 billion, much higher
    than the $18 billion the
    agency had recently
    predicted. Unless the economy sours, next year's
    surplus
    will be between $29 billion and $39 billion, the CBO
    said. In the
    12-month period ended March 31, the
    government ran a surplus of $19.3
    billion.

    Over
    the past six years, the government's share of total
    borrowing in U.S.
    credit markets has fallen to 6% from
    nearly 60%. That has played a major
    role in keeping
    down interest rates; the Treasury now competes less
    with
    private borrowers for funds.

    Wednesday's
    announcement means "there will be continued downward

    pressure" on rates, said M. Cary Leahey, an economist with
    High
    Frequency Economics Ltd. in Valhalla, N.Y.
    "People can talk about [Fed
    Chairman Alan] Greenspan
    maybe raising rates, and the lack of demand
    from
    Asian investors," he added. "But with supply drying up,
    that will still
    help lower rates."

    GO
    KO!!!!!!!!!!!!!!!!!!!!

    MYCROFT

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    • The fact that the government is running a surplus
      is a major factor in the in interest rates . the
      biggest hog of all time is on a diet maybe fasting . the
      capital surplus that has been feeding the hog will
      overflow the hoppers, thus the equities will look better
      to everyone with cash .
      The future of the blue
      chip companies' price will be enormous .If you are a
      gambler there are thousands of stocks to gamble on if you
      are not then you have government bonds and KO . The
      ko tract record far exceeds the government . for
      safe havens and a hundred years of practice in
      managing money. vs a hundred years of mismanaging money.
      Who do you trust? The money poured into 100 dollar
      hammers 500 dollar toilet seats , Jobs for friends of
      Bill.
      That is so upseting I think I'll go get me a
      Coke.
      notbuffett

 
KO
42.32+0.29(+0.69%)Sep 30 4:00 PMEDT