As the markets take a leg down many investors rush to safer assets seeking stability this inflow in buying pressure is inflating assets such as JNJ, KO, COST since they have a better margin to stand inflation. These are companies are profitable and will keep a healthy net margin as the fed decreases demand but their valuations do not support their earnings.
One example is KO (coca cola)
With a 283B~ market cap
Yearly revenue of 38B and 9B~ earnings
Nearly 32x their eps and 2$ near their ATH’s
At some point these prices will decrease dramatically My prediction is this particular ticker to go down 45 EOY
Im planning on buying leap puts probably 60$ strike for October on margin in June after before the next FOMC meeting/ CPI reading on the trading week starting the 13th
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