KO (Coca Cola): Strong Buy

1= Strong Buy 5=Strong Sell

Summary:

Coca Cola (KO) is a solid company and provides for an excellent buy at the moment to bolster your finances.  The stock just recently hit a 52 week low of 40 but 40 seems like a strong support since, in 2004 and 2003 the stock fell just enough to hit 40 but subsequently rebounded to the mid 50s.  In this case, the markets are still in turmoil but the stock is solid enough and accountable enough that it should not pose the threat of falling substantially below the level it is at right now.  It has outperformed the Dow by ten percent since the year started and has maintained that advantage over the Dow Jones in the 3 month and six month charts as well.  The stock has an average p/e of 17 and a very solid beta of just .72.  The stock is also dividend paying with a yield of over 3.5 percent each year which is a substantial ammount during such difficult economic times.  It has a huge market cap and is 66 percent institutionally owned.  This in addition to the fact that it is part of the Dow 30 attests to the stability and strength of such a stock.  During difficult times like these people depend on solid, viable and stable companies and thus we recommend KO as a buy.

 

Stability: 2 Growth: 3 Overall Rating: 2
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