Trade Alert – Coca Cola Stock (KO) Earnings Disappointment July 23 2014

Coca Cola Stock has been in my portfolio for decades. It is one of the few stocks that continually has a trade available. The earnings disappointment from yesterday (July 22) has spilled over into selling today (July 23) setting the stock up for more trading possibilities.

Coca Cola Stock Earnings Disappointment

Coca Cola Stock reported $12.6 billion in second quarter revenue which was a decline of 1% from the same period last year. Overall revenue is down 3% for the first half of 2014 with income of $2.6 billion which is also a decline from last year of about 3%.

Estimated for earnings were on average around 64 cents and earnings came in at 58 cents per share which translates into a shortfall in both revenue and earnings. Surprisingly the recent acquisition of Coffee Keurig Green Mountain did not translate into boosting earnings as most analysts had expected. Instead it was Sprite beverage which gained 6% growth in the quarter that boosted Coca Cola revenue. Overall China continues to show its importance for more and more companies as volume was up 10% in China.

Coca Cola Stock – New 52 Week High

On Monday of this week (July 21) Coca Cola Stock hit a new 52 week high of $42.57 on investor anticipation of better than expected earnings. That obviously was a mistake and the stock has sold off around 4.1% since then.

Coca Cola Stock One Month Daily Chart

You can see in the chart below the recent sell-off following the earnings disappointment. A Bollinger Bands Squeeze was evident starting on Friday last week which was a signal that the stock was set to either bounce up or down caused by investor enthusiasm prior to earnings being released after markets closed on July 22.

The plunge in Coca Cola Stock has set the stock up for a number of excellent trade opportunities to help boost my overall return in the stock. The higher volatility is definitely welcomed as it will assist to drive up the option premiums for Coca Cola Stock which normally are fairly reserved.

Coca Cola Stock to July 23 2014

The rest of this article is for members as I discuss the outlook for Coca Cola Stock as the stock heads into the next quarterly earnings report and a number of conservative trades to profit from the recent earnings disappointment.

Coca Cola Stock – Trade Alert and Strategy Discussion

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Trade Alert – Coca Cola Stock (KO) Earnings Disappointment July 23 2014

Coca Cola Stock Earnings Disappointment

Coca Cola Stock – New 52 Week High

Coca Cola Stock One Month Daily Chart

Coca Cola Stock – Trade Alert and Strategy Discussion

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