Tuesday, February 18, 2014


Added a little Coke (KO) to the portfolio today on price weakness.  Earnings and revenue hit expectations, but the price got hammered.  Added shares at $37.43.   This takes KO to about 2.9% of the portfolio, roughly a full position.

FAST Graph for your enjoyment:

As you can see from the charts above, the PE for KO never gets much lower than 20.  KO is not undervalued today, but it rarely is.  I'd say its trading at a "normal" multiple, and should give steady growth in share price and dividends dang near forever ;-)  Buy it, then forget about it.


** See the nice write up below from Paul Price on Coke (one day after my post above).  Great minds think alike I suppose.....

The Pause that Refreshes – Market Shadows Drank Coke

by Dr. Paul Price
Buying a Coke for the Value Portfolio
Market Shadows’ Virtual Value Portfolio pulled the trigger and purchased 107 shares of beverage giant Coca-Cola (KO) this morning at $37.27 per share.
The $3,988 investment amount came out of our cash reserve fund.
 KO quote Feb. 19, 2014
KO is a conservative position with a greater than 3% dividend yield. We expect to see an increased payout announcement in the near future.
Risk appears low as the absoulte and relative Price to earnings ratios  are both near the low points of the past 15 – 20 years. While the company’s rate of growth has slowed, its fundamentals have never been stronger. 
KO  - Value Line Metrics   Jan. 2014

KO estimates
KO chart 2001 - 2014

Dr. Paul Price | February 19, 2014 at 7:22 am | URL: http://wp.me/p2soa2-iRnZ

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