Shorting KO

Discussion in 'Trading' started by cheeks, Jan 27, 2003.

  1. cheeks


    For any of you that like to swing/position trade, take a look at the daily, weekly and monthly for KO(If you have not already.) If it breaks 40, I think it will be a great low risk short.

    I've been waiting patiently for several years for a good opportunity to short this stock. I may finally get it.:)

    BTW-How do you guys post charts? I would have put them up, I just do not know how.:(
  2. Cheeks,

    KO came up on my scan as a short a few days ago. Why wait til it breaks 40? It was a great low risk short when it pulled back up to the 50 day EMA. Who knows how low it will go now, but I bet it'll probably pull back up again before it goes down further.
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  3. cheeks


    I will wait till 40 because I want a clear signal it has broken its multi year support in the 41-44 area and its descending trendline in the daily. I would be trading it over a weeks/months time frame. I rarely hold positions this long anymore, but this chart has the things I like.

    BTW- I agree, it was a great swing opp. off the 50day EMA.

    You may be/probably are correct.

    The stock often ignores the DJIA and does its own thing. But it seems to have joined in sympathy to the weakening Dow. Its breaking in to the bottom of its support while setting 52 week lows has gotten my attention.
  4. today it is trading the lowest it has been since early 1996 unless my charts are wrong. I think it has already had a downside breakout and is oversold, so I am waiting for a bounce to go short. A bounce back to 44 or so on light volume would be great for me.
  5. Most of the threads on the board are short-term trading related. And why I am a trader to the core, part of the game plan is to build wealth for me and my family.
    Does anyone else get the feeling that in the coming year or years there will be great opportunities to buy global brand stocks at relatively decent prices? This question has my wheels spinning....having made a few small purchases in the last few months...some of the charts have me waiting...some of the fundamentals are terrible.....ok, so my point is to try to start a thread on the valuation of global brand stocks. Questions like :

    Will Goodyear Tire(GT) survive? Will an opportunity arise in the value of it's common stock?

    Will we see an increase in reverse splits ? Many companies had multiple splits in the 1990's...

    How far will (KO) fall? The chart looks terrible..and valuation seems to support more downside.

    Happy Trading.
  6. ronbgelf


    wouldn't short any of the stocks Mr. Buffet loves and owns.
  7. cheeks


    Uptick, with you all the way on that first statement. I think there could be some great investment opportunities before this bear is over.

    The chart on KO does look terrible. The company has been way overvalued for years. This stock was so over price in 1997 it was ridiculous. While it is not nearly as overpriced now as it was then, 24 times forward earnings for an 8-10% grower(maybe!) is steep in this market.

    That said, KO is still a good company. The valuation is the only problem I see with it. I'm planning on buying all I can get my hands on before this Bear is over.

    Gotta run, market is about to open.

  8. Agree there are lots of values out there if your time frame is long one will be able to find five baggers if one takes position now.
    Last couple of weeks I am compiling a list of number one and number two players in many not technology sectors and found some good companies to research further and add to my long term portfolio when they are at ridiculous level GT was one I was also looking at also CC,SKS and AMTD.
  9. Yes, that could be painful.
  10. it hit the bottom of this downswing on thursday. time for an upswing.
    #10     Feb 3, 2003