Consumer Staples
Company Presentation
Des Dudaney
Erica Elsasser
Neil Hertenstein
Mun Yi Se Tho
May 18th, 2010
Table of Contents
1.
2.
3.
4.
5.
Sector Summary
Company Comparison
PepsiCo Analysis
P & G Analysis
Recommendation
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Recommendation
Sell 67 BP of Pepsi
Sell 40 BP of P&G
Hold Philip Morris
& Wal-Mart
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Sector Summary
SIM Portfolio
Sector
S&P 500 Weight
SIM Weight
+/-
Consumer Discretionary
10.55%
10.44%
-0.11%
Consumer Staples
10.91%
11.71%
0.80%
Energy
11.18%
9.76%
-1.43%
Financials
16.47%
11.41%
-5.07%
Health Care
11.55%
14.63%
3.07%
Industrials
10.76%
13.10%
2.34%
Information Technology
18.91%
20.18%
1.27%
Materials
3.45%
1.64%
-1.82%
Telecommunication
2.73%
3.70%
0.98%
Utilities
3.48%
2.10%
-1.38%
* Weights as of 4/30/2010
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
CS Sector Recap
Decrease weight of Consumer Staples by 107 basis points
 Provides a 27 bp underweighting
 Defensive sector and lower returns in economic growth
 Allows more cyclical sectors to experience higher gains
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Sector Holdings
Current Holdings
Recommended Holdings
SIM – 11.71%




SIM – 10.64%
PepsiCo………………2.90%
Wal-Mart Stores Inc…2.78%
Philip Morris Int’l……..2.96%
Procter & Gamble……3.07%




PepsiCo……………….2.23%
Wal-Mart Stores Inc….2.78%
Philip Morris Int’l……...2.96%
Procter & Gamble…….2.67%
* Weights as of 4/30/2010
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Target Prices
Company
Current Price
Target Price
Dividend
Upside Potential
Philip Morris
$46.25
$57
4.9%
28.1%
Procter & Gamble
$63.38
$72
3.1%
16.7%
Wal-Mart
$52.73
$62
2.3%
17.6%
PepsiCo
$66.75
$74
2.7%
13.6%
Prices as of 5/13/2010
5/28/2016
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
8
Target Prices of Sector Stocks in S&P
Company
AVP
ADM
DF
TSN
PM
WMT
WAG
CVS
KO
TAP
SVU
SJM
CCE
COST
KR
CAG
PG
EL
PEP
KFT
Price
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
28.10
27.12
9.74
17.61
46.21
52.69
35.65
35.76
53.35
42.78
13.65
58.16
26.35
58.25
22.10
24.42
63.39
61.52
66.70
30.59
Consensus
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
37.69
35.75
12.11
21.73
56.32
62.61
41.64
41.71
61.80
49.25
15.62
66.55
29.90
65.18
24.68
27.25
70.21
68.06
73.43
33.65
Sector
Summary
Upside
34.13%
31.82%
24.33%
23.40%
21.88%
18.83%
16.80%
16.64%
15.84%
15.12%
14.43%
14.43%
13.47%
11.90%
11.67%
11.59%
10.76%
10.63%
10.09%
10.00%
Company
Comparison
LO
MO
SWY
CL
SYY
MJN
GIS
MKC
KMB
K
RAI
DPS
CLX
HNZ
CPB
HRL
BFB
WFMI
STZ
HSY
SLE
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
PepsiCo
Analysis
80.22
21.71
23.62
83.66
30.26
51.01
73.75
39.55
62.15
55.51
54.08
38.00
64.85
46.65
35.58
41.37
57.34
40.66
17.79
47.96
14.86
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
88.00
23.44
25.36
89.75
32.43
54.63
78.69
42.18
66.08
58.65
57.06
40.00
68.17
49.03
36.50
42.27
58.56
41.51
18.10
47.32
13.94
P&G
Analysis
9.70%
7.97%
7.37%
7.28%
7.17%
7.10%
6.70%
6.65%
6.32%
5.66%
5.51%
5.26%
5.12%
5.10%
2.59%
2.18%
2.13%
2.09%
1.74%
-1.33%
-6.19%
Recommendations
Company Information
Philip Morris - Hold
Philip Morris International Inc. (PM) is the leading international tobacco
company.
 Spin-off from Altria(MO) in 2008.
PM owns seven of the world’s top 15 brands
 Brand portfolio includes Marlboro, the number one cigarette brand
worldwide.
Products sold in approximately 160 countries.
As of 2008, the company held an estimated 15.6% share of the total
international cigarette market outside of the U.S.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Wal-Mart Stores - Hold
Wal-Mart Stores, Inc. operates various formats of retail stores
and restaurants, including combination discount and grocery
stores, supercenters, Sam’s Clubs, hypermarkets, cash-ncarry stores, department stores, and general merchandise
stores
 Attractive Valuation
 Big move to online – sales, ad campaign etc.
 Improved merchandising capabilities, capital efficiency, inventory
management
 Very non-cyclical
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
PepsiCo
PepsiCo, Inc., founded in 1898, manufactures, markets, and
sells numerous foods, snacks, and carbonated and noncarbonated beverages worldwide.
Market capitalization of $106.55 billion.
PepsiCo owns hundreds of brands around the world, but the
most recognizable include:
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Procter & Gamble
The Procter & Gamble Company (P&G), founded in 1837,
engages in the manufacture and sale of consumer goods
worldwide.
The company operates in 3 global business units:
 Beauty
 Health and Well-Being
 Household Care
Products are sold in over 180 countries worldwide
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
PepsiCo Analysis
03/01/2004
•EPS is expected to increase, but remain significantly lower than before.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
09/01/2012
06/01/2012
03/01/2012
12/01/2011
09/01/2011
06/01/2011
03/01/2011
12/01/2010
09/01/2010
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
EPS Growth %
18.00
16.00
14.00
12.00
11.23
10.00
8.00
6.00
4.00
2.00
0.00
Recommendations
12/01/2000
•ROE has been on a slight upward trend, but is expected to decrease.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
12/01/2010
09/01/2010
2.50
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
03/01/2004
12/01/2003
09/01/2003
06/01/2003
03/01/2003
12/01/2002
09/01/2002
06/01/2002
03/01/2002
12/01/2001
09/01/2001
06/01/2001
03/01/2001
ROE Relative to S&P 500
4.50
4.00
3.50
3.00
2.52
2.00
1.50
1.00
0.50
0.00
•EBITDA Margin is expected to decrease.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
12/01/2010
09/01/2010
1.20
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
03/01/2004
12/01/2003
09/01/2003
06/01/2003
03/01/2003
12/01/2002
09/01/2002
06/01/2002
03/01/2002
12/01/2001
09/01/2001
06/01/2001
03/01/2001
12/01/2000
EBITDA Relative to S&P 500
1.60
1.40
1.15
1.00
0.80
0.60
0.40
0.20
0.00
•Net profit margin is lower than Coca-Cola’s.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
12/01/2010
09/01/2010
0.60
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
03/01/2004
12/01/2003
09/01/2003
06/01/2003
03/01/2003
12/01/2002
09/01/2002
06/01/2002
03/01/2002
12/01/2001
09/01/2001
06/01/2001
03/01/2001
12/01/2000
Profit Margin Relative to KO
1.20
1.00
0.80
0.59
0.40
0.20
0.00
Recommendations
PEPSICO
Sector
Summary
06/01/2004
03/01/2004
12/01/2003
09/01/2003
06/01/2003
03/01/2003
12/01/2002
09/01/2002
06/01/2002
03/01/2002
12/01/2001
09/01/2001
06/01/2001
03/01/2001
12/01/2000
(PEP) Growth
Company
Comparison
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
PEPSICO
03/01/2007
12/01/2006
09/01/2006
06/01/2006
(PEP) Cash Flow Per Share
PepsiCo
Analysis
P&G
Analysis
12/01/2010
09/01/2010
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
Cash Flow per share
14%
6.00
12%
4.80
5.00
10%
4.00
8%
3.00
6%
4%
2.00
2%
1.00
1%
0%
0.00
Recommendations
Technical Analysis
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Discounted Cash Flow
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Sensitivity Analysis
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Target Price
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
PepsiCo Recommendation
Benefits
•
Recommendation: Sell 67 bps
Current Price: 66.75
Target Price: 74.00
Implied Upside: 13.6%
Global leadership in the snack business
–
Expand snack business in developing and emerging
markets
•
Taking advantage of the coincidence of consumption
in snacks and beverages
•
Purchase of PBG and PAS bottlers
•
Focus on health and wellness
–
Expand the “Good for You” portfolio
–
Continue to make core snacks healthier through
innovations in heart-healthy oil, sodium reduction and
the additions of whole grains, nuts and seeds.
Risks
Sector
Summary
Company
Comparison
•
Failure to realize US bottler integration/synergies
•
Currency Volatility – 48% of PepsiCo revenue is from
operations outside the US. Largest operations are in
North America (US, Canada, Mexico) and UK
PepsiCo
Analysis
P&G
Analysis
Recommendations
Procter & Gamble Analysis
-5.00
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
12/01/2011
09/01/2011
06/01/2011
03/01/2011
12/01/2010
09/01/2010
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
03/01/2004
EPS Growth %
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
-10.00
-15.00
•EPS growth is expected to remain negative.
Recommendations
-10%
-60%
06/01/2000
09/01/2000
12/01/2000
03/01/2001
06/01/2001
09/01/2001
12/01/2001
03/01/2002
06/01/2002
09/01/2002
12/01/2002
03/01/2003
06/01/2003
09/01/2003
12/01/2003
03/01/2004
06/01/2004
09/01/2004
12/01/2004
03/01/2005
06/01/2005
09/01/2005
12/01/2005
03/01/2006
06/01/2006
09/01/2006
12/01/2006
03/01/2007
06/01/2007
09/01/2007
12/01/2007
03/01/2008
06/01/2008
09/01/2008
12/01/2008
03/01/2009
06/01/2009
09/01/2009
12/01/2009
03/01/2010
06/01/2010
09/01/2010
12/01/2010
ROE %
50%
45.00
40%
40.00
30%
35.00
20%
10%
14%
-20%
-50%
PROCTER & GAMBLE (PG) Growth
Sector
Summary
Company
Comparison
PROCTER & GAMBLE (PG) Return on Equity
PepsiCo
Analysis
P&G
Analysis
30.00
0%
25.00
20.00
15.00
-30%
-40%
10.00
5.00
0.00
•ROE is at low levels of the decade.
Recommendations
•EBITDA margin is below JNJ.
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
12/01/2010
09/01/2010
0.85
06/01/2010
03/01/2010
12/01/2009
09/01/2009
06/01/2009
03/01/2009
12/01/2008
09/01/2008
06/01/2008
03/01/2008
12/01/2007
09/01/2007
06/01/2007
03/01/2007
12/01/2006
09/01/2006
06/01/2006
03/01/2006
12/01/2005
09/01/2005
06/01/2005
03/01/2005
12/01/2004
09/01/2004
06/01/2004
03/01/2004
12/01/2003
09/01/2003
06/01/2003
03/01/2003
12/01/2002
09/01/2002
06/01/2002
03/01/2002
12/01/2001
09/01/2001
06/01/2001
03/01/2001
12/01/2000
09/01/2000
06/01/2000
EBITA Margin Relative to JNJ
1.00
0.95
0.90
0.86
0.80
0.75
0.70
0.65
0.60
-10.00%
06/01/2000
09/01/2000
12/01/2000
03/01/2001
06/01/2001
09/01/2001
12/01/2001
03/01/2002
06/01/2002
09/01/2002
12/01/2002
03/01/2003
06/01/2003
09/01/2003
12/01/2003
03/01/2004
06/01/2004
09/01/2004
12/01/2004
03/01/2005
06/01/2005
09/01/2005
12/01/2005
03/01/2006
06/01/2006
09/01/2006
12/01/2006
03/01/2007
06/01/2007
09/01/2007
12/01/2007
03/01/2008
06/01/2008
09/01/2008
12/01/2008
03/01/2009
06/01/2009
09/01/2009
12/01/2009
03/01/2010
06/01/2010
09/01/2010
12/01/2010
Net Profit Margin %
50.00%
18.00
40.00%
15.43
16.00
14.00
30.00%
12.00
20.00%
10.00
10.00%
8.00
8.00%
6.00
0.00%
-20.00%
•Net
Profit Margin has low growth rate and is expected to remain so.
PROCTER & GAMBLE (PG) Growth
Sector
Summary
PROCTER & GAMBLE (PG) Net Profit Margin
Company
Comparison
PepsiCo
Analysis
Linear (PROCTER & GAMBLE (PG) Growth)
P&G
Analysis
Recommendations
4.00
2.00
0.00
Technical Analysis
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Absolute Valuation
Valuation
High
P/Forward E 23.9
P/S
22.2
P/B
9.3
P/EBITDA
3.1
P/CF
18.4
Sector
Summary
Low
11.1
12.6
2.3
1.8
9
Company
Comparison
M edian
20.7
18.8
3.1
2.6
16.7
PepsiCo
Analysis
Current
15.2
16.8
2.7
2.4
12.1
P&G
Analysis
Recommendations
Relative Valuation to S&P 500
Relative to
S&P 500
P/Trailing E
P/Forward E
P/B
P/S
P/CF
High
1.5
1.3
3.2
3.2
1.4
Sector
Summary
Low
0.75
1
1
2.1
1
Company
Comparison
M edian
1.3
1.1
1.3
2.8
1.2
PepsiCo
Analysis
P&G
Analysis
Current
0.81
1.1
1.2
2.8
1
Recommendations
Relative Valuation to Industry
Relative to
Industry
P/Trailing E
P/Forward E
P/B
P/S
P/CF
High
1.1
1.1
1.2
1.2
1.2
Sector
Summary
Low
0.83
0.96
0.3
0.9
0.9
Company
Comparison
M edian
1
1
0.8
1.1
1
PepsiCo
Analysis
Current
0.99
1.1
0.8
1.1
1
P&G
Analysis
Recommendations
Price Target
72.162
78.6
66.025
P/CF
1
P/EBITDA
70.41
P/B
65.975
P/S
79.8
65
70
Sector
Summary
75
Company
Comparison
P/Forward E
80
PepsiCo
Analysis
P&G
Analysis
Recommendations
Discounted Cash Flow Model
Terminal Discount Rate =
Terminal FCF Growth =
Year
Revenue
2010E
77,798
2011E
79,138
1.7%
5.8%
5.0%
4.8%
4.7%
4.5%
4.4%
4.2%
4.1%
4.0%
15,395
14,764
15,324
17,146
17,969
18,814
19,661
20,526
21,388
22,265
23,155
% Growth
Earnings Before Taxes
Earnings Margin
Taxes
Tax Rate
Earnings from Discontinued
Interest % of Sales
Net Income
% of Sales
Plus/(minus) Changes WC
% of Sales
Subtract Cap Ex
Capex % of sales
Free Cash Flow
Shares Outstanding
Current Price
Implied equity value/share
Upside/(Downside) to DCF
2018E
109,681
2019E
2020E
114,178 118,745
18.7%
18.3%
19.5%
19.5%
19.5%
19.5%
19.5%
19.5%
19.5%
19.5%
4,291
4,715
4,942
5,174
5,407
5,645
5,882
6,123
6,368
27.0%
27.5%
28.0%
27.5%
27.5%
27.5%
27.5%
27.5%
27.5%
27.5%
27.5%
2,000
2,000
2,000
1,759
1,843
1,930
2,016
2,105
2,194
2,284
2,375
2.6%
2.5%
2.4%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
13,436
13,239
12,704
14,190
14,871
15,570
16,270
16,986
17,700
18,425
19,162
-1.5%
-4.0%
11.7%
4.8%
4.7%
4.5%
4.4%
4.2%
4.1%
4.0%
3,112
3,166
3,350
3,517
3,686
3,859
4,033
4,210
4,387
4,567
4,750
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
(2,179)
(108)
(373)
(879)
(922)
(965)
(1,008)
(1,053)
(1,097)
(1,142)
(1,187)
-2.8%
-0.1%
-0.4%
-1.0%
-1.0%
-1.0%
-1.0%
-1.0%
-1.0%
-1.0%
-1.0%
3,112
3,166
3,350
3,517
3,686
3,859
4,033
4,210
4,387
4,567
4,750
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
11,257
13,130
12,331
13,310
13,949
14,605
15,262
15,934
16,603
17,284
17,975
16.6%
-6.1%
7.9%
4.8%
4.7%
4.5%
4.4%
4.2%
4.1%
4.0%
Terminal Value
339,891
15.0
17.0
11.0
12.5
$
$
2015E
2016E
2017E
96,482 100,824 105,260
4,060
91,612
137,151
228,763
5.59%
Current P/E
Projected P/E
Current EV/EBITDA
Projected EV/EBITDA
2014E
92,151
19.8%
% Growth
NPV of Cash Flows
NPV of terminal value
Projected Equity Value
Free Cash Flow Yield
2013E
87,930
4,157
% Growth
Add Depreciation/Amort
2012E
83,743
9.5%
4.0%
40%
60%
100%
Free Cash Yield
15.2
17.3
11.4
12.9
15.9
18.0
10.9
12.4
Terminal P/E
17.7
Terminal EV/EBITDA
12.3
3,179
63.38
71.97
13.6%
Sector
Summary
Company
Comparison
PepsiCo
Analysis
5.29%
P&G
Analysis
Recommendations
Sensitivity Analysis
Discount
Rate
Growth
Rate
Target
Price
Upside
9.00
9.00
9.00
9.00
9.00
9.25
9.25
9.25
9.25
9.25
9.50
9.50
9.50
9.50
9.50
9.75
9.75
9.75
9.75
9.75
3.50
3.75
4.00
4.25
4.50
3.50
3.75
4.00
4.25
4.50
3.50
3.75
4.00
4.25
4.50
3.50
3.75
4.00
4.25
4.50
74.46
76.21
79.19
81.93
84.98
71.18
73.20
75.41
77.84
80.52
68.19
70.00
71.97
74.14
76.52
63.43
67.06
68.83
70.77
72.89
17.48%
20.24%
24.94%
29.27%
34.08%
12.31%
15.49%
18.98%
22.81%
27.04%
7.59%
10.44%
13.55%
16.98%
20.73%
0.08%
5.81%
8.60%
11.66%
15.00%
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Procter & Gamble Recommendation
Recommendation: Sell 40 bps
3.07%
3.10%
3.00%
Current Price:
Target Price:
$63.38
$72.00
Ratios
DCF
$72.16
$71.97
Implied Upside:
13.6%
Dividend yield:
3.1%
Implied Upside w/ Dividend:
16.7%
2.90%
2.80%
2.67%
2.70%
2.60%
2.50%
2.40%
Old Weight
Sector
Summary
Company
Comparison
PepsiCo
Analysis
New Weight
P&G
Analysis
Recommendations
Procter & Gamble Risks and Benefits
Risks
Benefits
• International initiative
• Currency Volatility
• Product Expansion
• Pampers Lawsuit
• Product leadership
• Changes in consumer
spending
• Increased Advertising
• Lower upside relative to
other consumer staple
companies
• Very defensive
• Consistent dividends
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Recommendations
Stock Recommendation
Sell 107 bp
 Sell 67 bp of Pepsi
 Sell 40 bp of Procter & Gamble
Limited potential upside in both stocks
Hold Wal-Mart and Philip Morris due to high upside
Sale of 107 bp in our sector will allow other sectors to utilize
it to gain better returns for the portfolio
Risks
 Sale of 107 bp will leave the portfolio less defensive should the
economy decline again
Sector
Summary
Company
Comparison
PepsiCo
Analysis
P&G
Analysis
Recommendations
Questions?