Trade: Pepsico (PEP)

Today I increased my position in Pepsico by 25% at a price of $97.25.  While I haven't had a chance to complete my homework and post my review on the company's first quarter results, I do know the company beat expectations and provided a solid set of results for the quarter.  The one thing that I noted to like, in particular, was the fact that North American Beverages (NAB) didn't do as bad as analysts expected.  While there is some concern on all of the China and Tariff talks impacting the stock and the fact that the company is seeing more competition against the 10-year treasury, we've now seen the stock drop roughly 21% from its 52 week highs.  This selloff is getting to be over done and any good news could sent the stock higher.  If the stock drops to $92.75 we'll see the stock yielding 4% and that's far from typical for this consistent player.  I do have more room in my position and cash levels to take advantage of more down side - and I do see potential for more of it - but we're now reaching points where it makes sense to have a larger position in the stock.

Please stay tuned for my upcoming notes from the quarterly results to get a deeper understanding to why I think this was the right move to make.

Stock Ratings: 1 = buy at current stock prices, 2 = buy on a 5-10% dip in stock price, 3 = sell on a 5-10% increase in stock price, 4 = sell at current stock prices to raise cash.  Ratings are based upon 12-18 month outlook on stock direction and not necessarily related to moves I make due to financial positioning.

Nothing on this site should be taken as advice, research, or an invitation to buy or sell any securities.  All views expressed are solely of my own and I am not a professional money manager.  Please consult with your financial adviser before taking any action in your own portfolio.