Shares of PepsiCo (PEP) are inching toward my June target of $68 so slowly that I think it’s time to sell and look for someplace to redeploy the money. With sales of sugared soft drinks stagnant in North America and with PepsiCo announcing that’s it’s going to try to grow sales of its “good for you” products in brands such as Tropicana and Tazo, I think investors are looking at a period of slow growth as the company lays foundations for future growth. (For more on those challenges see my post http://jubakpicks.com/2010/03/01/do-the-new-coke-and-the-new-pepsico-both-fail-the-taste-test/ )
I’ll be glad to buy these shares later when that work is further toward completion. But right now, I’m selling PepsiCo with a gain of 35% since I added the stock to Jubak’s Picks on April 21, 2009. This sale brings the cash position in Jubak’s Picks back up to near 15%.
Full disclosure: I don’t own shares of any stock mentioned in this post.