|Bid||0.00 x 1100|
|Ask||0.00 x 800|
|Day's Range||130.01 - 133.18|
|52 Week Range||104.53 - 135.24|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||14.40|
|Earnings Date||Sep 30, 2019 - Oct 4, 2019|
|Forward Dividend & Yield||3.82 (2.87%)|
|1y Target Est||133.85|
PepsiCo has agreed to buy out South Africa's Pioneer Foods Group for about $1.8 billion U.S. dollars. Though this company and its brands are less well-known here in the U.S. it's a big deal for Pepsi as it will give them a bigger presence in Africa and help them expand their global footprint. On the flip side, Pioneer had been struggling for a while as consumer spending continues to decline in its home region.
(Bloomberg) -- A technology startup near Ontario’s leafy border with Michigan says it has the answer to the world’s plastic pollution problem: sawdust.Origin Materials is getting ready to pay sawmills in the area $20 a ton for the scraps left over in the process of turning logs into lumber, which it will use to make recyclable plastic bottles that remove carbon-dioxide from the sky because they’re made from sustainably sourced wood waste. Nestle SA, Danone SA and PepsiCo Inc. plan to sell water in Origin’s recyclable plant-based bottles in early 2022.It’s one of the many unconventional ways conceived by scientists to reduce the world’s reliance on plastics made from petroleum, which emit as much climate-damaging pollutants as 189 coal plants each year from production to incineration. Other so-called bio-based plastics are being developed from sugar, corn, algae, seaweed, sewage and even dead beetles.“Consumers are caring about plastic in a way that they haven’t in a long time, maybe ever,” said John Bissell, 34, who founded Origin Materials in 2008 and has spent 10 years working as an engineer developing alternative plastics that don’t contribute to climate change. “Everyday things like bottles and clothing can now become carbon negative, but remain otherwise functionally identical.”That may be true in theory, but phasing out petroleum-based plastics will be an uphill battle. Use of the material has become so ingrained for societies around the world that about half of all new oil demand through 2040 will come from petrochemicals, an industry that relies on plastics for most of its business, according to Bloomberg New Energy Finance. The $500 billion global plastics market is responsible for 5% of greenhouse gas emissions, Friends of the Earth data show. Some projections see that ratio tripling in the next 30 years.Plant-based plastics, especially varieties made from sugar cane, are starting to seep into the mainstream as companies try to respond to consumers who are increasingly angry about the ecologically devastating impact of plastics. London-based Bulldog sells its male skincare products in plastic tubes made from sugar cane. Last year, Danish toymaker Lego A/S started including botanical pieces, like leaves, bushes and trees, made entirely of plant-based plastics in its box sets.It’ll take getting big food and beverage companies on board to really alter the equation. Nestle alone produces 1.7 million tons of plastic packaging a year, according to the Ellen MacArthur Foundation, enough to make over 51 billion bottles. Beverage makers like Coca-Cola Co. and Pepsi use a lot more than that. Coca-Cola rolled out its so-called plantbottle in 2009, but it’s still 70% petroleum based.“There is no doubt that awareness around plastic waste has become more prominent in the last two years,” said Simon Lowden, president of PepsiCo’s global snacks group, which announced in 2016 it would seek to reduce absolute greenhouse gas emissions by 20% by 2030. As part of a strategy to find more sustainable packaging, Pepsi last year joined Nestle and Danone’s NaturALL Bottle Alliance to find ways to reduce the carbon footprint of beverage bottles. All three plan to buy 100% plant-derived bottles from Origin Materials when its Ontario plant gets up and running at the end of 2020 with a starting capacity of 300 million bottles a year.Origin Materials developed a way to extract cellulose from wood waste to make para-xylene, a hydrocarbon usually derived from oil used to manufacture PET, one of the most common plastics today. Since trees and plants naturally capture CO2 through photosynthesis, using sustainably sourced sawdust and wood chips more than offsets any pollutants released in the manufacturing process, according to Bissell.However ingenious the techniques to make plant-based bottles may get, though, they’re still plastic. Not all varieties are recyclable or biodegradable. And ultimately unless they are recycled — and worldwide only one out of every five bottles is — plastic bottles inevitably end up in landfills where they may spew pollutants into the air, or worse, find their way into the oceans where most could take hundreds of years to degrade, killing birds, fish and whales in the process. When incinerating, bio-based plastics may be little better than oil-based ones because the carbon stored in them is released.Since David Attenborough’s Blue Planet 2 documentary in 2017 showed albatrosses feeding their chicks plastic by accident, plastic’s environmental impact has “gone from a niche topic of conversation and engagement to something that features in all our conversations,” said Mark Lancelott, a sustainability expert at PA Consulting Group Ltd.The London-based consultancy has seen a “significant increase” in requests from food and beverage companies on how to manage plastic waste.After the European Union and New York announced bans this year on certain single-use plastics, many companies are getting nervous about how far those regulations could go, added Katherine Lampen, a London-based partner in Deloitte’s sustainability advisory team, which advises big consumer packaged good companies.“They are concerned that the future viability of their business could be reduced due to a heavy reliance on the material,” she said.Skeptics of the bioplastic push say they’re not resolving the underlying problem. It would be better to focus on improving rates of reuse of plastic or glass packaging, with waste collected by the producer, according to Juliet Phillips, an ocean campaigner at the Environmental Investigation Agency, a non-governmental organization.If production of plant-based plastics were to be scaled up, “land-use demands could bring about competition with agriculture, accelerating deforestation concerns and biodiversity loss,” she said.For Bissell at Origin Materials, the plastic industry has become too important for global commerce to work on only one front to improve sustainability, especially considering soaring demand in emerging markets where reuse programs tend to be underdeveloped.“The end of life of plastics is really important. I'm not too sure that I'd argue that it's more important than climate change. That feels like maybe not the right trade off to make,” he said. \--With assistance from Hayley Warren.To contact the author of this story: Aine Quinn in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Lynn Thomasson at email@example.com, Daliah MerzabanNicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Molson Coors (TAP) announces a 39% hike in its quarterly dividend. The hike is in sync with the company's efforts to consistently enhance long-term shareholder value.
PepsiCo has struck a deal to buy South Africa's Pioneer Food Group for $1.7 billion, the companies said on Friday, lifting Pioneer's shares and boosting a sector that has been hit by drought and tough trading conditions. The U.S. drinks and snack group said on Friday that Pioneer's product portfolio was complementary to its own and would help PepsiCo to expand in sub-Saharan Africa by adding manufacturing and distribution capabilities. "Pioneer Foods forms an important part of our strategy to not only expand in South Africa, but further into sub-Saharan Africa as well," PepsiCo Chairman and CEO Ramon Laguarta said in a statement.
(Bloomberg) -- PepsiCo Inc. agreed to buy South Africa’s Pioneer Foods Group Ltd. for about 24.4 billion rand ($1.8 billion), adding local brands such as Weet-Bix breakfast cereal and Ceres fruit juice to ignite a push across the continent.The deal gives the U.S. drinks giant a hub from which to expand more aggressively in sub-Saharan Africa, said Eugene Willemsen, who is moving to Cape Town from PepsiCo’s New York headquarters to oversee the region. “This transaction is all about growth. We are looking to expand our footprint,” he said by phone on Friday.PepsiCo offered 110 rand a share for Pioneer, a premium of about 56% over the last closing price before deal speculation began in earnest on Monday, the companies said in separate statements. Zeder Investments Ltd., Pioneer’s biggest shareholder with a 27% stake, will vote in favor of the deal, alongside investors holding more than half the foodmaker’s stock.Pioneer’s shares soared 30% to 101.03 rand as of 11:28 a.m. in Johannesburg, while Zeder jumped by 23% to a seven-month high. Fellow South African food producer Tiger Brands Ltd. gained as much as 6.5%, the most since November, before falling back. Bloomberg News reported the deal on Thursday.The acquisition gives PepsiCo several brands and manufacturing facilities in countries including Nigeria and Kenya as well as South Africa. The deal is the first major international purchase under new Chief Executive Officer Ramon Laguarta, who took the helm in October, and builds on a $3.2 billion buyout of Israel’s SodaStream International Ltd. last August.For Pioneer, the takeover comes at a time when the Pretoria-based company has been struggling to cope with a consumer-spending slump in its home market, fueled by high unemployment and rising living costs. The foodmaker in May reported a decline in first-half profit as the weak economy hurt operating margins, and said the trading environment is likely to remain challenging.“Don’t be surprised if more clever foreigners buy South African assets on the cheap,” Syd Vianello, an independent analyst, said on Twitter. PepsiCo “also needs milled maize to make some of their snacks.”Pioneer said Monday that it’s in negotiations that could affect the stock price. The tie-up revives a partnership between the two companies that ended four years ago. Under that agreement, Pioneer bottled Pepsi products in South Africa.UBS Group AG, JPMorgan Chase & Co. and Centerview Partners Holdings LP acted as financial advisers to PepsiCo. PSG Group Ltd. advised Pioneer.(Updates with analyst comment in seventh paragraph.)To contact the reporter on this story: Loni Prinsloo in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Eric Pfanner at email@example.com, John Bowker, Thomas MulierFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The beverage and snack giant has agreed to purchase the maker of Weet-Bix breakfast cereal and Ceres fruit juice for roughly $1.7 billion.
(Bloomberg) -- PepsiCo Inc. is making the most of cheaper South African valuations in its $1.8 billion swoop for Pioneer Foods Group Ltd., analysts and investors said.And while the takeover offer is opportunistic, the premium of about 56% is also attractive to investors, who saw Pioneer shares slump to the lowest since 2013 before bid speculation emerged, they said.“No one knows how long this downturn was going to last, or how long it would take the share price to go back to 110 rand, which is what PepsiCo is offering,” said Peter Takaendesa, a money manager at Cape Town-based Mergence Investment Managers.Less than three weeks ago, Pioneer was trading at 68 rand, the lowest since March 2013. The stock jumped by a record 31% Friday, pulling biggest shareholder Zeder Investments Ltd. up 23%, while sector peer Tiger Brands Ltd. gained as much as 6.5%. Read more about PepsiCo.’s offer for Pioneer here.Here’s more of what analysts and investors are saying:Michele Santangelo, a money manager at Independent SecuritiesThe premium offered is certainly attractive to Pioneer shareholders. The offer is also opportunistic given that the share price of Pioneer has been trading at levels last seen in 2013.The offer has highlighted that there is value in the South African market and those with capital looking for expansion are taking notice.Henre Herselman, a derivatives trader at Anchor Private ClientsThe fact that PepsiCo are paying such a premium sends the message that they are quite keen to get this deal done.It’s great to see some investment interest in South African shares. But on the other hand, I have to ask the question: are the foreign entities buying out the last South African gems and externalizing the earnings?Takaendesa at MergenceThere is a lot of margin pressure between Pioneer and Tiger Brands because of the aggressive competition in the sector, and because the companies cannot recover input costs from the weak consumer. Overall, from that point of view, it is a good deal for Pioneer shareholders.This is a small transaction for PepsiCo from a size point of view, and if they are comfortable to take a long-term view, they will get value for money.The company has been impacted by the cyclical downturn in the overall economy that has affected the share price, but the market structure has not changed significantly.Pioneer and PepsiCo have worked together before, and PepsiCo knew the business, and that may have been the attraction for the deal.I don’t think it will be a full-on investor deluge into South Africa, but this does send a good message out there that there are good companies in South Africa and they present a huge opportunity for people to come in and get good businesses at cheap prices.To contact the reporter on this story: Adelaide Changole in Nairobi at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, John Viljoen, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PepsiCo Inc. said Friday it has reached an agreement to acquire South AFrica's Pioneer Foods in an all-cash deal valued at about $1.7 billion. The company is playing 110 rand ($7.90) per share, equal to a 56% premium over the 30-day volume weighted average price prior to an announcement on July 15. "This acquisition will help PepsiCo gain a solid beachhead for expansion into Sub-Saharan Africa by boosting the company's manufacturing and go-to-market capabilities, enabling scale and distribution," the company said in a statement. Pioneer owns a range of cereals, juices and other African staples, including brands that are popular in Africa including Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star. The deal will be funded through a mix of cash and debt and is expected to close by the first quarter of 2020. Pioneer Food shares climbed more than 30% on the news. PepsiCo was down 0.2% premarket, but has gained 20% in 2019, while the S&P 500 has gained 19%.
Emerging market shares rose on Friday and currencies touched a four-month high after comments from a top Federal Reserve official reinforced expectations of a U.S. interest rate cut this month, stoking demand for riskier assets. New York Federal Reserve President John Williams said on Thursday that policymakers could not wait for economic disaster to hit before adding stimulus. MSCI's index for emerging market shares rose 0.8%, on track to end the week higher with China, Hong Kong and South Korean stocks leading gains.
PepsiCo is to acquire South Africa’s Pioneer Foods for $1.7bn, expanding the US fizzy drinks and snacks company’s footprint in the African market as it diversifies under a new chief executive. The two companies said on Friday that Pepsi has agreed to buy Piooner’s outstanding shares for 110.00 South African rand per share in cash, valuing the deal at approximately $1.7bn. The acquisition will help Pepsi “gain a solid beachhead for expansion into Sub-Saharan Africa,” the maker of Tropicana, Walkers Crisps and the eponymous fizzy drink said, as it boosts its manufacturing and distribution presence on the continent.
PURCHASE, N.Y. and JOHANNESBURG, July 19, 2019 /PRNewswire/ -- PepsiCo, Inc. (PEP) ("PepsiCo") today announced that it has entered into an agreement to acquire all the outstanding shares of Pioneer Foods Group Ltd. (PFG) ("Pioneer Foods") for R110.00 per share in cash (approximately US $1.7 billion), which represents a 56% premium to the 30-day volume weighted average price prior to the cautionary announcement on July 15, 2019. Pioneer Foods has a robust, locally relevant product portfolio that complements PepsiCo's current lineup, with strong positions in cereals, juices, and other African nutritional food staples, including well-known, scaled brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, Safari, Spekko, and White Star. At the same time, this acquisition will help PepsiCo gain a solid beachhead for expansion into Sub-Saharan Africa by boosting the company's manufacturing and go-to-market capabilities, enabling scale and distribution.
Coca-Cola Company (KO) stock was down 0.53% in trading Thursday. The stock currently sits less than a percent below its 52-week high.
Earnings season is underway and corporate buybacks are set to boost earnings per share for S&P 500 companies.
After starting the year out on a dour note, the markets made a complete reversal. These days, the major averages -- like the S&P 500 and Nasdaq Composite -- continue to hit new record highs. The Dow Jones isn't doing too shabby either.But as the overall market surges higher, many stocks are quickly moving out of bargain status and perhaps into the expensive category. For those investors looking for value stocks, pickings are slim.Or are they?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe truth is, there are plenty of value stocks still out there to be had. Sure, you may not find them among the FANGs, but bargain hunters can still find great deals on value stocks with low P/Es, strong earnings profiles, sales and even strong dividends.And considering that over the long haul, value tends to beat growth, now could be the best time ever to load up on some of these value stocks. * 7 Stocks Top Investors Are Buying Now With that, here are three great value stocks to buy this July and hold for a long time. Goldman Sachs (GS)Trailing P/E: 8.9The vampire squid is becoming a kinder and gentler, well, vampire squid. Investment bank Goldman Sachs (NYSE:GS) has become one of the best value stocks around. Today, shares can be had for a trailing P/E of just 8.9. That's dirt cheap considering its future potential.The reason behind the numbers is simple and comes from its former vampire squid name. Stock, currency, and derivatives trading used to make up the bulk of GS revenues in previous years. Those operations are still there to some extent. But thanks to regulation, Goldman has had to look for other ways to grow. Without those, investors have sort of abandoned the major financial name.However, Goldman has found the solution in consumer banking to the mass affluent. The firm's personal lending and deposit account platform, Marcus, has been extremely successful -- gathering more than $46 billion in deposits and issuing $4.6 billion in loans. Meanwhile, its deal to buy out wealth manager United Capital Financial Partners adds technology, investment management, and additional mass affluent assets into its umbrella. The idea is that Goldman is going back to its roots as more of a banking institution than a trading one.This is wonderful for investors. These are the kind of operations that throw off plenty of steady cash flows. And they already have, thanks to strong numbers, Goldman was able to increase its dividend and announce a massive $7 billion buyback program.However, investors continue to ignore the potential. That makes Goldman Sachs a great value stock to buy today. Micron TechnologyTrailing P/E: 5.09Modern life runs on semiconductors. However, there is a big difference between the chips needed for self-driving cars and the one in your garage door opener. For Micron Technology (NASDAQ:MU), the fact that it focuses on the boring, analog side of that equation hasn't been so good in recent years.Analog chips are so standard that pricing for them is actually traded like a commodity. There's a spot market for these chips … just like a barrel of oil or bushel of corn. So, with supplies of DRAM and other basic analog chips being in a glut, Micron has been largely ignored -- unlike say, NVIDIA (NASDAQ:NVDA) -- and has become one of the cheapest value stocks around. You can currently snag MU stock for P/E of around 5.At that bargain price, you should snag all you can.For starters, the glut of DRAM may end as soon as the trade war goes. Already, Micron has seen a boost since President Donald Trump announced that firms can start selling chips to China's Huawei. Without trade issues, China should once again start consuming DRAM with reckless abandon.But what is really exciting is that MU has lucrative chipsets. At the same time, Micron continues to improve its memory chips to make them less like commodities and more irreplaceable to manufacturers. This includes its 3D XPoint technology -- which allows for very rapid storage and release of data. The kind of chip that is perfect for autonomous cars and A.I. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Over the long haul, these chips will help reduce Micron's dependency on boring DRAM and allow it to profit from higher margins and demand. In the meantime, investors can score this value stock for basically free while they wait for the turnaround. PepsiCo (PEP)Trailing P/E: 14.6By nature, most consumer staples are considered value stocks. That's because many of them aren't fast-growing anymore and are mostly known for their dividends. So, when you can find a steady-eddy consumer stock, trading for a low valuation that also has some serious growth behind it, you have to consider it for your portfolio. And that sums up PepsiCo (NYSE:PEP) to a "T."PEP doesn't need an introduction. We all know the global provider of sweet beverages and salty snacks. The firm giant is pulling in billions in annual revenues across more than 200 different countries. But despite its size, Pepsi is still growing -- with management looking to score 4% to 6% organic growth this year.How PEP will do that comes down to continued improvements to its product mix. That includes new organic, healthy snacks as well as the continued foray into ready-to-drink coffee and sparkling water.Meanwhile, CEO Ramon Laguarta has continued to act on his promise of a "faster, stronger, better" PepsiCo. That includes investing a hefty dose of tech, consuming intimacy initiatives and looking to cut costs. So far, Laguarta's moves are working. Last quarter was simply smashing for PEP.And yet, the market still doesn't seem to care.That has made PEP a wonderful value stock to buy. With a P/E of just under 15, investors aren't pricing in any of the firm's growth potential. And with its 2.88% dividend, you're paid while waiting for that potential to be realized.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 3 Great Value Stocks to Buy This July appeared first on InvestorPlace.
Here's an earnings boost some might overlook. Some stocks, like PepsiCo and Twitter, are just a few U.S. companies that paid corporate tax rates of zero.
Investors that want the benefit of steadily rising dividends while gaining some defensive exposure via the consumer staples sector do not have to turn to dedicated staples exchange traded funds. Some dividend ...