PepsiCo (PEP)

This was a beverage company that got into the restaurant and snack food business. It exited the restaurant business. Fortunately it is still in the snack food business because it is still a relatively poor 2^nd choice company to Coca-Cola (KO-N) in beverages but is the king in snack food businesses globally. Still attractive and relatively cheap.

Owns Coca-Cola (KO-N) instead because of its dividend growth and they always increase their dividends. This one has the snack business and trades at a slightly higher beta and is probably a little more international. Believes that Coke will grow its earnings faster. This one is fine.

One of the things that he likes about this company over others is their salty snack division. Frito-Lay is one of the biggest in that industry and makes up about 35% of their revenues and about half of their profits. Nice diversification away from just the pure drink business.

Has not been particularly pleased with the way the franchise has been managed. Had gone to this company because they had the salty snack business which is a growthier area.

This and Coca-Cola (KO-N) have very stable earnings streams and people love the product and don’t cut back on it. Both companies have been going into health areas. Most important part of the puzzle that drives stock returns are valuations. On this she is really not seeing much of a discount to where they have historically traded. Sees better opportunities elsewhere.

(Top Pick Nov 21/11, Up 11.91%)

Good defensive name. Has had a fairly decent yield and has given some back. Has held in fairly well and decent dividend that recently increased and again next year or the year after.

Struggling recently. Good dividend yield and pretty good track record of increasing dividend yield. Global company. Food costs and changes in currency have been big headwinds to profitability. The unemployed are probably not buying as many Frito-Lays as it did when times were good. As a general rule they are a good quality company but not cheap enough right now. Would look at this one if the market went through a real correction.

Great global company and very diversified with their beverages and their snacks side. Good exposure and growth to emerging markets. Reasonable dividend. However, any company is not immune to economic slow down. Not a screaming buy based on valuation metrics. With anything consumer/retail oriented, earnings could be challenged and lower valuations could be at hand.

(Top Pick Sept. 23/11, Up 20.66%)

(Market Call Minute.) In the consumer staples group. Looks quite interesting. Group has consolidated recently. Would prefer Coca-Cola (KO-N).

This is definitely a good hold. A growth stock but also somewhat defensive giving you the best of both worlds.

It’s not that volatile. If you a day trading is has bounced around a lot but he invests for the long-term. Since the recession they have done an incredible job. He owns the bottlers. It is a good company and no reason not to own it.

Has lagged Coca-Cola (KO-N) and has been criticized for not making as many good strategic acquisitions non-cola type beverages. She likes the Frito-Lay division and they are trying to develop more healthy snacks. Expanding internationally. It is looking attractive to her and she is looking at this more closely.