I first wrote about PepsiCo (PEP) on March 13, 2009, at a price of $48.62. The stock continued to meander near $65 during the winter, but I still like the business model at this stage. Here's why:

In 2011, Pepsi's revenue will likely increase about 4% to 6%, aided by the acquisition of bottlers Pepsi Bottling Co. and PepsiAmericas. PEP should register a 5% to 8% revenue gain for 2011.

Continue reading Pepsi Continues to Meander

Pepsi Continues to Meander originally appeared on BloggingStocks on Tue, 29 Mar 2011 09:30:00 EST. Please see our terms for use of feeds.

PepsiCo (NYSE: PEP) closed at $59.03. PEP is scheduled to report Q3 EPS on October 8. PEP expects to close on the acquisition of Pepsi Americas (NYSE: PAS) and Pepsi Bottling Group (NYSE: PBG) in early 2010. PEP October and January option implied volatility of 24 is near its 26-week average of 26, according to Track Data, suggesting non-directional price movement.

JP Morgan (NYSE: JPM) closed at $44.81. JPM is expected to report Q3 EPS on October 14. JPM October option implied volatility is at 44, November is at 40; below its 26-week average of 53, according to Track Data, suggesting decreasing price movement. Paul Foster

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: PepsiCo volatility flat into EPS and Gatorade outlook originally appeared on BloggingStocks on Tue, 29 Sep 2009 08:00:00 EST. Please see our terms for use of feeds.

PepsiAmericas (NYSE: PAS) accepted Pepsi (NYSE: PEP) offer of $28.50 in cash or 0.5022 shares PEP. PAS September option implied volatility of 20 is below its six-month average of 33, according to Track Data, suggesting decreasing price movement.

Pepsi Bottling Group (NYSE: PBG) accepted PEP offer of $36.50 per share in cash or 0.6432 in shares of PEP. PBG September option implied volatility of 13 is low according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: PepsiAmericas and Pepsi Bottling Group volatility decreases after Pepsi purchase originally appeared on BloggingStocks on Wed, 05 Aug 2009 08:00:00 EST. Please see our terms for use of feeds.

After some wrangling, PepsiCo (NYSE: PEP) has agreed to pull the trigger on the acquisitions of Pepsi Bottling Group (NYSE: PBG) and PepsiAmericas (NYSE: PAS). In all, the deals come to roughly $7.8 billion (half in stock and half in cash).

On the news of these transactions, the share prices of both Pepsi Bottling Group and PepsiAmericas have spiked 7%. Keep in mind that -- back in April -- Pepsi made a play for these companies, but at a total price tag of $6 billion or so.

Continue reading Pepsi drinks up two bottling deals

Pepsi drinks up two bottling deals originally appeared on BloggingStocks on Tue, 04 Aug 2009 12:20:00 EST. Please see our terms for use of feeds.

Continue reading PepsiCo earnings preview

PepsiCo earnings preview originally appeared on BloggingStocks on Tue, 21 Jul 2009 18:00:00 EST. Please see our terms for use of feeds.

We're in the heat of earnings season, with many of the top 100 S&P 500 companies reporting this week. One name that slightly fizzled at its earnings report today was PepsiCo Inc. (NYSE: PEP), which announced first-quarter net results of $1.14 billion, or 72 cents per share, a 0.9% decline from previous year's levels.

On the plus side, the per-share result was a nickel better than analysts were expecting, according to Thomson Reuters. Revenue, on the other hand, slipped 0.8% lower to $8.26 billion, falling shy of expectations for $8.28 billion.

While the numbers didn't exactly wow the Street (PEP shares are slightly lower in early trading), they also didn't illustrate a significant fall-off from the previous year, despite company warnings that the first half of 2009 would face challenging year-over-year comparisons amid rising commodity costs and shifting foreign exchange rates.

Continue reading PepsiCo Inc. (PEP) bids for bottlers as earnings edge lower

PepsiCo Inc. (PEP) bids for bottlers as earnings edge lower originally appeared on BloggingStocks on Mon, 20 Apr 2009 12:40:00 EST. Please see our terms for use of feeds.

Beverage stocks are often considered "defensive" in nature. After all, no matter what troubles beset the economy, people continue to eat and drink.

Granted, a recessionary environment might impact purveyors of expensive champagnes. But our focus here is on everyday canned sodas and moderately-priced beer and wine.

Of course, no report on beverages would be complete without the two giants of the field -- Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP).

Chuck Carlson, editor of The DRIP Investor looks at Pepsi and suggests, "Investors should take advantage of the current price lull to do buying in these shares."

... Read the full article on PepsiCo

Meanwhile, Stephen Leeb, editor of The Complete Investor, looks at Coke and is attracted by both its expanding market opportunities and expanding dividend.

... Read the full article on Coca-Cola

Bottling these drinks is also big business and PepsiAmericas (NYSE: PAS) -- the world's second-largest bottler of PepsiCo beverages -- is a recent feature from quantitative analyst Vahan Janjigan, editor of The Forbes Growth Investor.

... Read the full article on PepsiAmericas

Energy drink maker Hansen Natural (NASDAQ: HANS) has caught the eye of Bill Martin. The editor of BullMarket.com finds the stock attractive because the company has recently attracted some hedge fund investors.

... Read the full article on Hansen Natural

In The Forbes International Investment Report, editor John Christy interviews Lou Gerken of Gerken Capital Associates who sees potential in FEMSA (NYSE: FMX), which produces distributes Coca-Cola, Dos Equis, Tecate Beer in Mexico.

... Read the full article on FEMSA

And Nilus Mattive in his Dividend Superstars newsletter, looks to Chilean wine maker, Vina Concha y Toro (NYSE: VCO) as a play for both growth and income investors.

... Read the full article on Vina Concha y Toro

This report is prepared by Steven Halpern's TheStockAdvisors.com which offers a daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

A six-pack of beverage bets: Coke, Pepsi and Vina Concha Y Toro make the list originally appeared on BloggingStocks on Fri, 12 Sep 2008 13:00:00 EST. Please see our terms for use of feeds.

"With its CEO recently buying $10 million of shares, PepsiAmericas Inc. (NYSE: PAS) has to be considered one of the most credible Insider stories in quite some time," notes Jack Adamo.

Here, in his Insiders Plus newsletter, the advisor -- who specializes in assessing situations in which corporate insiders are purchasing stock -- he looks at the world's second-largest Pepsi bottler.

"When I was a kid, a Pepsi was a dime; today, it's about $1.50 for the same size bottle. So, forgive me if I laugh myself silly when analysts say Pepsi bottlers are in trouble due to cost inflation.

"The price of the product has gone up at a compound annual rate of 5.6% per year for 50 years. Is this year going to kill it? I think not. Nor does CEO, Rober Pohlad whose recent purchase was done through a family-owned holding company.

"It was not a huge buy in relation to his holdings -- it increased his stake in the company from 9.6% to 9.9% -- but $10 million is $10 million. Do that a few times, and pretty soon it starts adding up to real money. (Sorry, couldn't resist.)

"The stock has fallen this year from $36 to $26, which is about where he made his recent buys. After a blowout 2007, the company guided down expectations for 2008, citing economic weakness. The stock quickly tanked.

Continue reading CEO invests $10 million at PepsiAmericas (PAS)

CEO invests $10 million at PepsiAmericas (PAS) originally appeared on BloggingStocks on Mon, 14 Apr 2008 14:30:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman upgraded ConocoPhillips (NYSE: COP) to Buy from Neutral, as they see the stock as inexpensive but views the upgrade "as much about avoiding near-term earnings risk with our pure-play refiners."
  
• Jefferies upgraded shares of Ashland (NYSE: ASH) to Buy from Hold on valuation as they find the risk/reward "intriguing" at current levels.
  
• Bear upgraded Wynn Resorts (NASDAQ: WYNN) to Outperform from Peer Perform citing valuation and Macau operating momentum.

• Photon Dynamics (NASDAQ: PHTN) was raised to overweight from Equal Weight at Lehman.
  
• PepsiAmericas (NYSE: PAS) was upgraded to Neutral from Underweight at HSBC.
  
• JP Morgan upgraded Nordic American Tanker (NYSE: NAT) to Neutral from Underweight.

Analyst upgrades: COP, ASH and WYNN originally appeared on BloggingStocks on Mon, 17 Mar 2008 10:40:00 EST. Please see our terms for use of feeds.

• Wachovia upgraded Legg Mason (NYSE: LM) to Market Perform from Underperform citing valuation, new CEO change, and reduced Citigroup (NYSE: C) ownership.
  
• Bear upgraded Panacos Pharma (NASDAQ: PANC) to Outperform from Peer Perform citing renewed confidence in Bevirimat, an HIV inhibitor, following analysis of Phase IIb data. The firm expects a partnership for Bevirmat to be the next catalyst.
  
• Deutsche Bank raised PepsiAmericas (NYSE: PAS) to Buy from Hold shares on valuation, as they believe the recent weakness is overdone.

• Fannie Mae (NYSE: FNM) was raised to Equal Weight from Underweight at Morgan Stanley.
  
• Friedman Billings added Great Atlantic & Pacific Tea (NYSE: GAP) to its FBR Top Picks List.
  
• Jabil Circuit (NYSE: JBL) was upgraded to Neutral from Sell at Merrill Lynch.

Analyst upgrades: Legg Mason, Panacos Pharma, PepsiAmericas originally appeared on BloggingStocks on Wed, 05 Mar 2008 11:46:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman downgraded STMicroelectronics (NYSE: STM) to Underweight from Overweight, as they expect the company to underperform its peers.
• UBS downgraded Biogen Idec Inc (NASDAQ: BIIB) to Sell from Neutral, citing valuation and their belief that there would be no significant premium if the company was bought.
• American Community Bancshares (NASDAQ: ACBA) was downgraded to Hold from Buy at Stifel, based on valuation.
• Goldman Sachs downgraded Crosstex Energy Inc (NASDAQ: XTXI) to Neutral from Buy, citing valuation.

• PepsiAmericas Inc (NYSE: PAS) was downgraded to Underweight from Neutral by HSBC.
  
• Amodcs Ltd (NYSE: DOX) was removed from the Conviction Buy List by Goldman Sachs.
  
• Citigroup assumed coverage of Tenneco Inc (NYSE: TEN) with a Sell from a Hold.
  
• Morgan Stanley downgraded LDK Solar (NYSE: LDK) to Equal Weight from Overweight.

Analyst downgrades: STM, BIIB, ACBA and XTXI originally appeared on BloggingStocks on Thu, 13 Sep 2007 11:05:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman Sachs upgraded the U.S. beverage sector, including Coca-Cola (NYSE: KO), Molson Coors Brewing Company (NYSE: TAP), Anheuser Busch Companies (NYSE: BUD), PepsiAmericas Inc (NYSE: PAS) and Coca-Cola Enterprises (NYSE: CCE) to Attractive from Neutral. The firm cited expectations for a stronger 2008, benign commodity cost outlook, better than expected US beer demand, and valuations. Goldman upgraded shares of PepsiCo Inc (NYSE: PEP) to Buy from Neutral citing valuation and improving industry fundamentals.
  
• Bear Stearns upgraded ImClone (NASDAQ: IMCL) to Outperform from Peer Perform citing positive Flex trial results and the new market opportunity for Erbitux.
• Thomas Weisel upgraded Starwood Hotels (NYSE: HOT) and Marriott International (NYSE: MAR) to Market Weight from Underweight based on healthy August trends, credit market may ease concerns over supply growth, and valuations.

• Thornburg Mortgage (NYSE: TMA) was upgraded to Buy from Neutral at UBS.
• Western Digital Corp (NYSE: WDC) was upgraded to Outperform from Peer Perform at Bear Stearns.
• KeyBanc raised Ruby Tuesday (NYSE: RT) to Hold from Underweight.
• Take-Two Interactive Software (NASDAQ: TTWO) was upped to Buy from Hold at Gabelli.

Analyst upgrades 9-11-07: U.S. beverage sector, IMCL, HOT and MAR originally appeared on BloggingStocks on Tue, 11 Sep 2007 10:35:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Baird upgraded Red Lion Hotels (NYSE: RLH) to Outperform from Neutral based on valuation, brand expansion progress and takeover potential.

• Constellation Energy (NYSE: CEP) was upgraded to Buy from Hold at Citigroup based on higher cash flow expectations and valuation.

• JP Morgan upgraded Brinker (NYSE: EAT) to Overweight from Neutral, and sees potential upside from slower unit development and a possible Mac Grill sale.

• BMO Capital upgraded Nvidia (NASDAQ: NVDA) to Outperform from Market Perform following a strong second quarter.

• Stanford upgraded InfoSpace (NASDAQ: INSP) to Hold from Sell on valuation; They consider the core online segments looks to be priced into the stock and downside support is given with tax credits and the cash balance...

• Citigroup raised Cox Radio (NYSE: CXR) to Hold from Sell.

• JP Morgan upgraded shares of PepsiAmericas (NYSE: PAS) to Neutral from Underweight.

• Friedman Billings upgraded shares of Emulex (NYSE: ELX) to Outperform from Market Perform.

• DirecTV (NYSE: DTV) was raised to Buy from Hold at Gabelli.

• Seagate (NYSE: STX) was upgraded to Buy from Neutral at Goldman.

Analysts upgrades: DTV, EAT, NVDA and STX originally appeared on BloggingStocks on Fri, 10 Aug 2007 11:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: SanDisk (SNDK), Business Objects (BOBJ) and the Beverage Sector top today's list of downgrades.

• SanDisk Corp. (NASDAQ:SNDK) was downgraded to Neutral from Buy at UBS, citing expectations for an oversupply of flash memory in 2006 and 2007.
• Business Objects (NASDAQ:BOBJ) was downgraded to Sector Perform from Outperform at Pacific Crest, citing valuation concerns and increasing competition from Oracle (ORCL), Microsoft (MSFT) and open source competitors.
• The Beverage Sector was downgraded to Cautious from Neutral at Goldman Sachs. The firm cited declining demand in core categories, raw material inflation and valuation.
  • Goldman downgraded PepsiAmericas, Inc. (NYSE:PAS) and Coca-Cola Enterprises, Inc. (NYSE:CCE) to Sell from Neutral
  • while COTT Corp (NYSE:COT) was added to their Conviction Sell List.

OTHER DOWNGRADES:

• Kevin Dann & Partners downgraded shares of Pep Boys (NYSE:PBY) to Hold from Buy on valuation and the lack of near-term catalysts.
• Thomas Weisel downgraded Ikanos Comm (NASDAQ:IKAN) to Peer Perform from Outperform citing a slowdown of VDSL deployments in Japan due to persisting inventory build at NTT.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 11-13-06: UBS downgrades SanDisk to Neutral originally appeared on BloggingStocks on Mon, 13 Nov 2006 12:18:00 EST. Please see our terms for use of feeds.