Essay on You Are an Investment Analyst

Words: 3160
Pages: 13

You Are an Investment Analyst Abstract Through this paper Pepsi and Coca Cola will be fully evaluated. A stock market analysis will be presented to a client as part of a professional consultation process. A background of both Pepsi and Coca will be accompanied in order to have a full synopsis of each company. The stock trends will be examined for both investment options. The stock trends will be based from the intial public offering day to January 2, 2012. Current events surrounding both companies will be displayed in order to assist the analysis. Lastly, we will analyze the financial statements of both companies. After a complete review of both companies a recommendation will be made as the better investment opportunity for …show more content…
With Coca Cola and these two events their stock is projected to stay even until a dramatic drop is see globally. In May 2012, Activist shareholder Relational Investors LLC acquired about $600 million stake in PepsiCO Inc. Relational Investors LLC has not called for any immediate changes but has mentioned PepsiCo’s slow-growing beverages business would be better off in a separate, independent structure from the rest of the company (Chon, 2012). The Wallstreet Journal states that the Chairman and Chief Executive Ms. Nooyi faced investor dissatisfaction since least after the company lost market share in the US soda sales rival to Coca-Cola Co. This situation is causing frustration for many investors. In 2012, PepsiCo Inc. made a decision to get rid of 8,700 jobs and boosting its marketing budget as much as $600 million as it tries to compete with the U.S. beverage business which they continue to lose grounds to Coca Cola (Esterl & Ziobro, 2012). Investors may need to be weary that PepsiCo may be not focusing enough on its biggest brands. In recent years the company attempts to make more than double its revenue from nutritional drinks and snacks.
Coca-Cola Financial The following table focuses on the quarterly periods of market prices per share for Cocoa Cola’s common stock, as reported on the New York Stock Exchange. As of February 20, 2012, there were 250,275 shareowners accounts of record.