Coca Cola Reaches New 52 Week High
Coca Cola Reaches New 52 Week High
The Coca Cola Company (KO) fell slightly on Wednesday after reaching a new 52 Week High the past two trading sessions. On Monday a report came out from the Financial Times that the company plans to double it’s bottling capacity in China and triple it’s sales within the country over the next 10 years.
Call Options Volume
Options Volume for KO Shares rose nearly 2000% on Wednesday (According to Options Dragon) with over 350,000 contracts changing hands. December Calls for 52.50 and 55.00 were strong. Along with January Calls from a strike price of 40 up to a strike price of 52.50.
Expectations
Earnings estimates for the fourth quarter of 2009 don’t look to be improving much over time but first quarter 2010 and the full yearly earnings for 2010 have seen some expectation growth. Next quarter earnings are expected to be 15% better than a year ago while 2010 is expected to be 11% more profitable than 2009. Revenue is expected to grow at 1% this quarter and 8.7% next quarter.
KO Trade
The Forward Price to Earnings ratio (P/E) for Coca Cola (KO) is currently at 16.99, a little rich for the expected growth of the company next quarter. The stock has rallied 28% over the past 52 weeks and is due for a pull back from it’s high. I would wait for a correction of 5% before building a position.
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