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JimVanMeerten (56.80)

Has Coke lost its fizzle?



September 13, 2011 – Comments (1) | RELATED TICKERS: KO


Over the years a company that has always been in the news has been the iconic American brand Coca-Cola (KO).  No matter where in the world you go you see the bottle, logo and even without knowing the local language to read the label you know its a Coke.  The stock has even caught Warren Buffet's attention and is part of the Bershire Hathaway (BRK.B) portfolio.  Is there still fizz left for your portfolio?  Let's look at the numbers.

First please look at the 2 1/2 year weekly trading chart of KO vs. its 20, 50 and 100 week moving averages provided by Barchart:

Barchart technical indicators:

1  - 48% Barchart overall technical buy signals - short term indicators are strengthening

2 - Trend Spotter technical buy signal

3 - Priced above its 20, 50 and 100 day moving averages

4 - 9 new highs and up 3.08% in the last month

5 - Relative Strength Index is 51.25%

6 - Barchart computes a technical support level at 68.21

7 - Recently traded at 69.26 which is above its 50 day moving average of 68.37

Summary:  Long term investors should not be afraid to add Coca-Cola (KO) to their portfolio.  If the sales projection come in and the stock return more to its median P/E ratio of 20 then investors could experience a total return in the 15% - 17% range annually over then next 5 years

Jim Van Meerten is a Marketocracy Master

1 Comments – Post Your Own

#1) On September 13, 2011 at 1:38 PM, davejh23 (< 20) wrote:

...AND Coke is undisputedly the most valuable brand in the world...more recognized than any other brand by a mile.  Also doesn't hurt that KO pays a decent that's been increased year after year, even throughout the financial crisis.  If you'd bought 5 years ago, you would have already collected almost 20% of your cost in dividends.  If you'd bought 20 years ago, you would have collected over 130% of your cost in stocks!

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