X, I am drinking a Diet Pepsi as I write this, so I don't totally hate them. With PEP, we have a blue chip growing at a rate that is less than you can earn on T-Bills. They are in competition with one of the greatest cos. in the world, KO, and the scars show. Much of their push has been into third world countries, so growth may even turn negative soon. Offsetting that is the fact that this summer has been very hot. But it is also almost over. The dividend yield is crappy for a non-growth stock. So, I can't see any way in the world that it is worth 24 times eps. Unless one just wants to buy something that will survive, which Pepsi definitely will. Not at this bloated price, IMHO, but 30-40% lower. However, we have to give them credit for trying to save the young boys of America by setting Michael Jackson's hair on fire. <G>
Good Luck,
MB |
