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  • Date Submitted: 10/08/2013 11:07 PM
  • Flesch-Kincaid Score: 72.4 
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There has been much talk lately about Coca-Cola and its potential as a value stock ?as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the late 1980s) and a P/E or less than 21 ?right at the bottom of its five-year low. Moreover, the current price of approximately $43 a share is also near the bottom of its nine-year range ?(nine years ago, the last former great CEO of Coke, Roberto Goizueta, was still at the helm of the company). Sure, Coke has had its own set of problems, but it is a great company QTZ100A Tower Crane,
they would argue ?and heck Mobile Crusher For Sale In South Africa,
Warren Buffett is also an owner of Coke shares.

While I believe Coca-Cola is a very strong brand and should be a part of every investor抯 long-term core holdings, I do not believe it is a good time to buy at this point. The growth in the stock price of KO was neither due to luck nor coincidence ?it was due to Goizueta抯 shrewd management of the stock price, Keough抯 salesmanship of the company, and Ivester抯 financial genius ?along with a roaring bull market more than anything else. Despite the lack of leadership in Coca-Cola during the last seven years, part of the old dream of KO being a growth stock has still hung on ?for far too long. For KO to be an attractive stock once again, this author will need to see a more compelling valuation, such as a stock price of $25 to $30 a share. At some point, however, I believe KO may be a glamour stock once again (as it still has a lot of potential in China and India where only a total of about 850 million cases of syrup were shipped in 2004, compared to 20 billion cases for the entire world) HZS120 Batching Plant,
but not until some of the weak hands have been shaken out from the stock.

    Article Tags:
        Stock Price,         Warren Buffett,         Bear Market


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