Sell Coke (KO), Buy Proctor (PG)

It is always nice to "buy what you know." Some of the best investments have been in things we use everyday. Based on pure valuation, Coke (KO) (8% Growth) is overvalued trading at 19 times forward earnings while Proctor & Gamble (PG) (12-14% Growth) is fairly valued at 19 times forward earnings. One of the two stocks will correct in the next 6-12 months. In 12 months P&G should trade around $70 and Coke see little price appreciation.

Note: As of 12/20/06 I have no position in either KO or PG