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 https://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.
Yeah, with a cost basis under $13/share I don’t see any reason to sell. (Can you tell I’ve owned it forever?) Last time I sold any PEP was in Oct ’07, for about $74, when it looked to me like the market as a whole was pretty well topped off. I still have a few shares and will probably keep hanging on for the long term. I suppose my kids will inherit it!
Robert, ABV tracks ITUB and BRF. No need to own them all. Can dollar cost average more affectively into BRF.
I got in at 48.23 and currently getting a 4.02% yield on cost. I’m liking the yield, but agree there may not be a lot of upward movement in stock price for a year or so. But with the yield I’m inclined to stay in unless there’s a fear that the dividend can’t be maintained
I’ve wanted to buy Pepsi for a little while but have been holding out for a price below $60. It got there for a few days but I missed it. I see it as overpriced now. I need a div yield in excess of 3% before I’ll even consider it.
jaydew, Personally I’d wait. PEP is a pretty stable stock. I hate paying unnecessary taxes. It really depends on your situation. If you are nervous to hold you could use a stop. I would only sell if you are really itching to buy something else. (***This assumes you are in a taxable account***)
That should have been “but personally”
jaydew,
To wait or not is up to you, but person I would say never put tax considerations before investment decisions.
What about Schlumberger (SLB)? , it’s currently at $62.28 way under the 50 day moving average. This is one of Jim’s stock pick for the next Decade. You guys have any thoughts on this stock and the timing?
No one has ever lost money taking their profits too early.
Considering the over bought situation of the market sounds like a good time to take profits on stocks with limited growth potential.
I am looing at ABV for a buy ! Gezz !
As for GG, it is down with an up dollar. When the dollar comes back down, GG will go up !
If I were you, I’d buy both of them back !
Losing my butt on ABV & GG and sold those too.
Thats a tough one since their are a lot of research reports showing good prospect for PEP thru 2012. My may concern would be with Europe with the falling EURO which could make their products expensive. However, I am also expecting the US Dollar to eventually fall off significantly towards the end of 2010.
panjwar:
I answered you in another posting.
thanks for the great pick, Jim. I’m following your advice to sell so I’ve got a stop order in for 66.35.
I’m also taking my profits with KO which I bought around the same time and have a similar gain.
would it make sense to hold onto this one for another month in order to get the long-term capital gains tax instead of the short-term?