Coca Cola Company (KO)

Hey everyone thanks for coming by and reading my little blog.
After scanning the list of top of NYSE % gainers, I spotted Coke on there with a very nice $1.47 gain today.
This stock has been on a tare this year up over 8% on the year!

I do not own any shares of KO at this time.

I am rating KO a Buy on there fundamental strength and the strong uptrend they have been in for the last few years. I would like to share with you my analysis of this company.

What does this company do?
I am sure we all know what Coke does but the official description is:
The Coca-Cola Company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. It manufactures beverage concentrates and syrups, which it sells to bottling and canning operations, fountain wholesalers and some fountain retailers, as well as some finished beverages, which it sells primarily to distributors. The Company owns or licenses more than 400 brands, including diet and light beverages, waters, juice and juice drinks, teas, coffees, and energy and sports drinks. It also has ownership interests in numerous bottling and canning operations. Finished beverage products bearing the Company�s trademarks are sold in more than 200 countries. As of December 31, 2006, the Company operated through eight segments: Africa; East, South Asia and Pacific Rim; European Union; Latin America; North America; North Asia, Eurasia and Middle East; Bottling Investments, and Corporate. In June 2007, the Company completed the acquisition of Energy Brands, Inc., known as glaceau.

How has this company been doing?

Coke released there 2nd quarter earnings report on July 17th. Earnings per share came in at $.80 up from $.74 in the 2nd quarter of 06. Net revenue was up 20%.

Looking more long term we see that revenue has steadily increased from 3.96 billion in 2002 to 5 billion in 2006. Cash flow has been a little erratic as of late going from 2.2 billion in 2002 to 6.6 billion in 2005 to 2.4 billion in 2006. Earnings have increased steadily from 1.61 per share in 2002 to 2.22 in 2006.

The company pays a good dividend at $0.34/share. Number of shares outstanding has held pretty steady at around 2.3 billion shares for the last 5 years. Only .92% of float is out short. Good to know everyone else thinks this is a strong company to.

Current ratio is strong at 1.90. I look for anything over 1 to 1.5.

Valuation
Now for some valuation numbers current PE ratio is a good 24.8. PEG ratio is pretty high at 2.27 I usually like to see something lower than 2. Price/Sales ratio is 4.93, 70% greater than other company's in the same industry. Return on Equity comes in very strong at 29.10% better than 87% of company's in the same industry. Valuation wise people know this company is strong and are willing to pay a premium for that strength and growth.

The Chart
Looking at the chart we can see that this company has been in a very strong uptrend since March. We had a pullback in late July to the 50 day moving average but has now broken through on strong volume. Technically speaking this chart looks great.













All around this stock looks great, earnings are strong every quarter and even after they grown this big they are still moving up. If I were buying stocks today this is one I would be purchasing.

COCA COLA COMPANY IS RATED A BUY