1/10/25 - $pep - Buy. low $140s...is obvious.1/10/25 :: VROCKSTAR :: NASDAQ:PEP
Buy. low $140s...is obvious.
- look at the green arrows when i've commented in the past. these were trading positions. in/out. it was cheap, but i simply saw more oppty to own/hold OTC:GDLC , NASDAQ:NXT , $tsm... you know if you follow me. and it's worked.
- but right now with 10Y rates headed higher we need to play a bit more defense and staples that are simply getting (seemingly) irrationally dumped are a great hiding spot.
- at current valuation you're getting 4.5% cash yield, dominant position in global snacks (read: pricing power and that's key in a rising rate environment)...
- and if you look at "PEP/M2" in trading view you'll see it's held this oscillating range for almost 40 years!!! we're at the lower end of this range. also interesting is if you just look the ticker, zoom out, with MONTHLY bars, you'll see we've last been *this* oversold on monthlies going back to 2008!!
- does it go lower? fam you know i like to saw... god knows. but this is a great defensive pickup with probably less tariff risk than discretionary and still solid in a weaker consumer? you bet. will FX matter? yes, it does for all staples. but units x pricing power up and to the right over the LT. it's a buy. only job we have here is the sizing.
i'm at 1.5% and looking to get bigger, otherwise i think i can just park it here and earn some good r/r yield.
have a good weekend
V
