If activist investor Nelson Peltz had his druthers, beverage giant PepsiCo (NYSE: PEP ) would calve off its drinks business, and focus on just the snack-food portion by buying Mondelez (NASDAQ: MDLZ ) .
While Pepsi management hasn't warmed up to the idea, there is some sense to what Peltz proposes, even if, as a huge shareholder in both Pepsi and Mondelez, it's a bit self-serving.
In Peltz's 59-page manifesto, the investor spells out a case of underperformance due to Pepsi's beverages unit. Pepsi, which has suffered from more than five years of negative volume growth, and more than a decade of declining per capita volume, is perennially No. 2 to Coca-Cola, which he says is a more-focused competitor with structural advantages.�
Conversely, the snack-food business already comprises two-thirds of its revenues, has the top market share in salty snacks, and is experiencing volume growth across all its business lines. By getting rid of the beverage unit, which includes Pepsi and Gatorade, it could�achieve significant increases in shareholder value worth at least $33 billion by merging the remaining snack foods business with Mondelez, whose stock has languished�since splitting from Kraft Foods Group last year.�
Top 5 Heal Care Stocks To Own Right Now: Ship Finance International Limited(SFL)
Ship Finance International Limited, through its subsidiaries, engages in the ownership and operation of vessels and offshore related assets in Bermuda, Cyprus, Malta, Liberia, Norway, the United States, Singapore, the United Kingdom, and the Marshall Islands. The company also involves in the charter, purchase, and sale of assets. As of March 22, 2011, it owned 29 oil tankers, 8 oil/bulk/ore carriers, 3 dry bulk carriers, 9 container vessels, 2 jack-up drilling rigs, 3 ultra-deepwater drilling units, 6 offshore supply vessels, and 2 chemical tankers. The company offers its services to various sectors of shipping and offshore industry, including oil transportation, drybulk shipments, chemical transportation, container transportation, drilling rigs, and offshore supply vessels. Ship Finance International Limited was founded in 2003 and is based in Hamilton, Bermuda.
Advisors' Opinion:- [By John Buckingham, Chief Investment Officer, Al Frank Asset Management, Inc. (AFAM)]
Ship Finance International (SFL) primarily engages in the transportation of crude oil and oil products, dry bulk, and containerized cargos, and in offshore drilling and related activities.
Top 5 Heal Care Stocks To Own Right Now: Range Resources Ltd(RRS.AX)
Range Resources Limited engages in the exploration and development of oil and gas in Somalia, the Republic of Georgia, the United States, and Trinidad. The company?s property interests include Nugaal and Dharoor blocks in Puntland, Somalia; East Texas Cotton Valley prospect in Red River county, Texas; and the North Chapman Ranch project in Nueces county, Texas. It also holds interests in blocks located in the Republic of Georgia. Range Resources Limited is based in West Perth, Australia.
Hot Bank Companies To Invest In 2014: Kiska Metals Corporation (KSK.V)
Kiska Metals Corporation, together with its subsidiaries, engages in the acquisition and exploration of mineral resource properties in Canada, Australia, and the United States. The company primarily explores for gold, silver, and copper deposits. Its principal project is the Whistler property that consists of 884 claims covering approximately 135,203 acres of land located to the northwest of Anchorage, Alaska. The company was formerly known as Geoinformatics Exploration Inc. and changed its name to Kiska Metals Corporation in August 2009. Kiska Metals Corporation was incorporated in 1980 and is headquartered in Vancouver, Canada.
Top 5 Heal Care Stocks To Own Right Now: Hurco Companies Inc. (HURC)
Hurco Companies, Inc., an industrial technology company, engages in the design, manufacture, and sale of computerized machine tools, computer control systems, and software products to companies in the metal working industry primarily in North America, Europe, and Asia. The company offers general purpose computerized machine tools, such as vertical machining centers/mills and turning centers/lathes. It also provides computer control systems and related software for press brake applications. In addition, the company produces and distributes software options, control upgrades, hardware accessories, and replacement parts for its machine tool product lines, as well as provides operator training and support services to its customers. Hurco Companies, Inc. offers its products to the precision tool, die, and mold manufacturers; independent metal parts manufacturers; and specialized production application or prototype departments within manufacturing operations. It serves aerospace , defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products through independent agents and distributors in North America, Europe, and Asia, a swell as through direct sales personnel in Canada, China, France, Germany, Italy, Poland, Singapore, South Africa, Spain, the United Kingdom, and certain parts of the United States. Hurco Companies, Inc. was founded in 1968 and is headquartered in Indianapolis, Indiana.
Advisors' Opinion:- [By John Emerson]
Hardinge (HDNG) the Perfect Fit to the Investment Puzzle
Several years earlier I had started following the machine tool sector and I became quite familiar with Hardinge. Although I never invested in the stock (I had opted for Hurco), I had noted that Jeffrey Gendell had been purchasing shares the company. Hurco (HURC) had much higher margins and it was my belief that the superior quality of their computerized machine tools and their accompanying software were reflected in their earnings. Hurco also held a vastly superior balance sheet at the time I made my investment.
Top 5 Heal Care Stocks To Own Right Now: Darford Intl Inc(WUF.V)
Darford International Inc. engages in the manufacture and distribution of dog treats and food primarily in Canada and the United States. The company also undertakes private label manufacturing contracts of pet treats. It sells its products under Darford brand name through wholesale distribution and retail partners. The company is headquartered in Vernon, British Columbia.
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