Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (16382)	9/18/1998 4:01:00 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

KO versus PEP. Don't you know that KO won the taste test over PEP? LOL KO up about 2.2% PEP up about 1.0% That's about the cost of a case of PEP or a 12 pack of KO

To: Susan Saline who wrote (16382)	9/19/1998 9:27:00 PM
From: thomas hayden	Respond to of 53068

If I had to choose between KO and PEP, I would go with PEP for 2 reasons. The first is that the gem behind PEP is Frito Lay. I think they count for about 55% of PEP revenues and they are truly a franchise that Warren Buffet would admire. The other reason is a gut feeling that everything runs in cycles and it is just a matter of time for PEP's day comes. KO has been king for too long. One thing to remember about KO is that they derive most of their profits overseas (I think greater than 70%), while Pepsi derives about 70% of its profits in the states. And KO has been killing them with pricing in the states. However, I would stay away from both of them at the moment. They each trade with a high mulitiple to book, and in a bear market I think you can get them much cheaper.