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Non-Tech : RFD: Time to think about Disney, Pepsico?

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To: Mike 2.0 who wrote ()9/8/1996 9:53:00 PM
From: Thomas J Pittman   of 54
 
Numbers courtesy of Dean Witter:
Hi PE Lo PE
92 26.9 18.9
93 22.3 17.6
94 18.5 13.2
95 29.4 16.9

I believe these numbers are based on TTM earnings.
Currently PEP is trading at about 20.5, which doesn't
provide much guidance IMO. Current street guidance
(for what it is worth) is Buy:10, Buy/Hold:10, Hold:6
no sells. S&P currently ranks it a buy(5) with a
fair value of 1 (figure that out). Consensus estimates
are at 1.43(96) [high est=145, low est=140, 28 total
estimates] and 1.64(97) [high est=170, low est=160, 28 total
estimates]. Both yearly estimates have been recently
revised downward by 0.01. The estimated 5 year earnings
growth is at 14% (5 total estimates). Dean Witter's target
price is 36.

One other thing, but this is from me. I think the strength
of the company is Frito Lay. The big concern for me is the
lack of international presence and growth. I wonder if
there is some strategy behind this or is KO just pounding
them?

Comments,

J
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