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$51.48 0.11 (0.21%)
7/3/2008 1:00 PM

The Coca-Cola Company (KO)

CAPS Rating:
****

The Company is a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.

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Avatar pnouri (98.20) Submitted: 2/04/08 7:55 AM : Underperform Start Price: $58.65 KO Score: 2.97

I think shares of KO have most recently gotten a boost from a flight to quality to consumer staples stocks. The company has not grown earnings significantly over the past few years (3%). Trades at almost 18x EBITDA!! For a company that does not grow!! Almost 30x Free Cash Flow!!!20x estimated EPS for 2008. I'm also skeptical of the company's purchase of Glaceua. Vitamin water is not a hard area to get into for other companies. Also, its popularity is limited. In addition, while investors might think KO is immune from a recession, if individuals are going to eat out less, they will be drinking less Coke. There is also a continual move to eat healthier in this country. The top thing this company has going for it is its 26% operating margin. The #1 reason to sell this stock is that Pepsi is just plain better.

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Avatar davixita (31.55) Submitted: 3/27/08 3:38 PM

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Yes, but KO is the leader in worldwide, not only in your USA

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Avatar pnouri (98.20) Submitted: 3/28/08 9:42 AM

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much of the upside in KO's earnings comes from forex. If the dollar ever strengthens, earnings will be hurt drastically. I don't care if they are the leader the stock is expensive. And as I said, I think the Vitamin water acquisition will proven to have been a poor one in the coming years.

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