Only three weeks after making this call and Cramer today agreed with an analyst that KO is a buy again @ 39.9 per share or 5.5% higher than it was at the time of his original call. PEP was about 77 at the time up 3.5% higher since said call.
It's amazing how often this guy will change an opinion on a stock and for no other apparent reason other then momentum.
Cramer consistently keeps people out of blue chip dividend stocks at their lows--then tells people to buy 10% up (and often MUCH HIGHER near their 52 week highs.) I wish I had $5 for every time Cramer has said "Don't buy," right after I bought what I saw as a really good price--and then, said, "Buy, buy, buy," right after I took profits.
Guess what? He does it with the Charitable Trust stocks, too. You get a message that he bought near the 52 week high--and you are scratching your head that he is buying up there--A FEW DAYS later, he sells the position.
Well, figure it out. Cramer knows he can move the market. So he gooses the stock when he thinks it is running out of steam. Stock moves higher, but comes back down--now he knows near term upside is capped. He sells, and pats himself on the back. Meanwhile, the folks watching Mad Money who bought the latest pump are stuck with dead money at best and more likely, a declining share price.
Make your own decisions. You never know the motives behind investment advice.
Both companies also have gone XD since this call so you can add an additional .7% to both their returns which puts KO at 6.2% and PEP at 4.2% respectively. Very close call but as usual you'd be much better off doing nothing and just hold on to them both.
I listened to Cramer years ago and purchased PEP and watched KO soar. The mistake was misreading the selling of Snack Foods (60% of business) which is a lower margin business justifying the slightly lower PE. KO sells only beverages which are very high margin wise. Switched to KO a few years ago and will never make the same mistake again listening to Cramer.