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Two Safe Ways to Profit From the "Alibaba Shockwave Effect"

In the mid-1990s, I was fortunate to meet and start working with an Upstate New York money manager named Anthony M. Gallea.

The relationship began when I attended and wrote stories about some of the investment seminars he periodically held for prospective and existing clients. He then became a “source” for some of the investment stories I periodically wrote for Gannett Newspapers. And we ultimately collaborated on a pretty successful book about “Contrarian Investing” that was published by Prentice Hall.


Along the way, Tony shared some pretty important snippets of investing wisdom…

  • Featured Story

    PepsiCo Inc. (NYSE: PEP) Is the Perfect Buy-and-Hold Investment

    If they aren't already, long-term investors should be digging up some solid defensive plays, like PepsiCo Inc. (NYSE: PEP).

    Everyone is familiar with PepsiCo, one of the leading manufacturers and marketers of food and beverage products. And with a strong business model, steady bottom-line growth, and a healthy dividend, PepsiCo is one of those rare buy-and-hold investments.

    Although its name is typically associated with soda, PepsiCo has developed a diversified product line that supports a steady revenue stream from more than just fizzy drinks. PepsiCo, through its Frito-Lay and Quaker Oats subsidiaries, is the name behind consumer-favorite brands like Doritos, Tropicana, Gatorade, SoBe Lifewater, Cracker Jack, Rice-A-Roni, and Grandma's Cookies.

    Many investors already know that, though.

    What you might not know is that PepsiCo's future earnings are based on much more than delicious snacks for U.S. consumers.

    This global powerhouse is investing in two areas that will drive food company profits going forward: emerging markets growth and "good for you" products.

    It has struck deals to develop both initiatives this year, and the efforts are paying off.

    Increased emerging markets sales boosted PepsiCo's revenue from those countries 33% last quarter. Sales of healthy products are on pace this year to hit almost $15 billion, and the company hopes to double that by 2020.

    When you combine its new business focuses with its existing profitable product lines, PepsiCo is strong enough to weather a global economic storm - exactly what our portfolios need to include right now.

    So it's time to buy PepsiCo Inc. (**).

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  • coke and pepsi