PEP -- Time to buy? Message Board

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Non-Tech : PEP -- Time to buy?

PEP 143.93

-1.5%

9:30 AM EST

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To: david siple who wrote (289)	10/7/1997 5:05:00 PM
From: Larry Novenstern	of 392

Without the dept that the old PepsiCo had in the rest. division, the new PepsiCo can focus on the package goods business. Frito-Lay and Pepsi have been the best performers for PepsiCo. They also put alot of debt onto Tricon as part of the spin-off arrangement. So the new PepsiCo is more streamlined, has less debt and is more focused. The new PEP has a good shot to hit 50 by 1998. Your real choice is how to handle YUM. I foresee an initial selloff down to maybe 28. Then all the investors would didn't want YUM in the first place are out. After that YUM can concentrate on their main business, unburden themselves from the PepsiCo debt and move forward with the three powerful brand names. Don't forget that YUM has one tenth the shares of PepsiCo. It should move up slower than PEP, but I see it at 40 by end of 1Q 1998.

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