Overreaction in Coca-Cola (KO) Means Trading Opportunity
10/21/2009 12:01 am EST
Coca-Cola (KO) reported earnings yesterday and the market promptly punished the stock for a 4% decrease in North American sales.
However, profits and international sales both rose due to a weak dollar and growth overseas. Watch for Coke to come down and test its 50-day moving average at around $52, but a trade that gets ready for it to bounce of that level would be prudent.
Coca-Cola's balance sheet is still very strong and it looks to be an overreaction to what was overall a positive earnings report.
By Tim Bourquin, trading content director, MoneyShow.com
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