seems to be holding down the Pepsi stock. Buying the bottlers makes sense and it will probably happen, but at a slightly higher price. Arbs could also be shorting the suiter and buying the target company. It just seems like a temporary situation that will clear itself up over time. Pepsi is clearly a buy below $50.
Think about it...I't does make sense... and here's why.. 1. They dont pay the premium for the bottle and collect from other companies who do.. 2. The state and federal gov. want to tax the bottle along with taxing the soda in it... The most important tax is the one on the bottle to reduce littering..If you return it you get a nickle... and the bottler collects the tax,because they have to deal with the returns... Take a guess at how many bottles are never returned for that nickle?
And yes, if the bottles are not purchased, PEP will meander into the mid-50s... assuming this bear market rally is under way still (and it should be, since the market should continue to into June strong, before going down again)