New Position in Coke (KO) Stock
I have been 100% cash since May 10th, 2006 in not only my personal accounts, but also my clients accounts as well (Diagram here of the Nasdaq chart when I went 100% Cash). Just this past Friday though I decided to take a small 200 share position in Coca-Cola (KO) as the stock got upgraded Friday morning (100 for myself, 100 for my Dad). My cost basis is $43.71 on the shares.
The 50 day moving average just recently re-crossed over the 200 day, and there has been strong support institutional buying around $43-$43.50 this past week. Other bullish indicators on (KO) include its industry group which is currently ranked as an A+ by IBD. Though not really weighed in totally, the stock does have a decent dividend as well which is never a bad thing to have. If the stock has a heavy distribution day I sell, or if it falls below its 200 day MA I sell. Upward potential is good and I think it is capable of going to $45 but we will see. With the market the way it is right now you have to play your positions extra tight, otherwise you are setting yourself up to get burned.
I bought a Cherry Coke last night to seal the deal and signal my support for the company, haha. Go (KO).
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