'buy on the news' in the stock on Th. The fundamentals of PEP are not good. 1. High commodity prices for FLays. 2. Stiff competition from newcomers in the snack arena. COSTCO does not even carry the FL snacks. 3. Declining consumption of sugary colas and fizzy drinks. 4. Decent growth but not explosive growth in the overseas markets. 5. The Russian deal was an act desperation on the part Indra who has done nothing for the stock.
'The fundamentals of PEP are not good.' What fundamentals are you talking about?? PEP is a steady global grower with very good fundamentals - they have another year of record earnings and dividends on tap in 2011. I hate to say it, but when folks start talking about iconic brands like Coke and PEP and their poor fundamentals, they loose credibility. BTW, Pepsi has more billion dollar brands than any other company on the planet. Now drink your Tropicana OJ and have a hot bowl of Quaker Oats and you'll feel better about Pepsi's future!
absurd.. there is huge demand/growth in emerging markets, india & china on Pepsi's products..it is a short term correction..but given EPS growth of Pep along with dividend increases..it is HUGE buy at these levels. P&G sold off to 62 & change until last week, it is back up in 64-65... Quality stocks don't remain low for long.