Coca-Cola: Pull-back is an opportunity to take a position

Further, the Q3 revenue miss of $8.04 billion vs. First Call's $8.11 billion was statistically neutral or flat. Now, in normal times flat revenue would be a negative, but under these U.S. and global economic conditions, flat is just fine. KO's long-term global revenue growth targets are still attainable, as North America revenue (down 4% in Q3) rebounds, and catches up with Latin American and Pacific region revenue gains (up 7% and 6%, respectively, in Q3).

The First Call FY2009/FY2010 EPS estimates for KO are $3.06 to $3.37. The $3.37 estimate for FY2010 will likely prove to be conservative.

Technically, Coca-Cola's stock chart is beautiful -- a strong uptrend, with minor, constructive pull-backs, and a price that continually stays above the 50-day moving average. Ignore the short-term IIs: there are many more long-term IIs adding to their positions. Hence, view Tuesday's pull-back as a Buy opportunity.

Stock Analysis: Coca-Cola is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 50% position in KO now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 75% of your KO position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $27.

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Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.