Ko Reserch Report

Market Edge® Research

Equity Research Report

COCA-COLA CO

KO-$44.99 · Exchange:NYSE

BUY

April 13, 2009

Recommendation

Opinion

BUY

Opinion Date Opinion Price

4/6/2009 44.97

Current Price Prior Opinion

44.99 HOLD

Summary:

KO has far more negative than positive fundamental characteristics at this time. The stock is fairly valued when compared to other stocks in its industry group but still has the potential for price appreciation. KO's management is effectively managing its total resources to generate profits for the company when compared to industry averages. The company’s finances are sound at this time but it needs to be careful regarding its debt ratios. Operating margins declined last quarter but operating cash flow remains positive. Demand for the company’s products and services needs to show improvement as sales for the last quarter declined -2.79% to $7.13 billion. Looking forward, the analyst consensus forecast for earnings for the next two quarters is expected to show improvement but revenue are expected to slow. Price momentum is strong and the stock has performed in line with the market when compared to the S&P 500. As a result of these factors, price appreciation should be limited over the near term. Over the longer term, the company’s fundamentals will need to improve in order to sustain price appreciation. Business Description: The Coca-Cola Company manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. Economic Sector: Consumer Staples Industry: Bev.-Non-Alcoh Number of Employees: 92,400 Share Information

52-Week Range: Market Capitalization: Common Shares Outstanding: Number of Institutional Shareholders: Shares Held By Institutions: % Held By Institutions: Dividend: Dividend Yield: Last Stock Split Last Split Date: Book Value Per Share: EPS Estimate 2009: EPS Estimate 2010: P/E on Estimate 2009: P/E on Estimate 2010:...