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Showing posts from February, 2017

Intelligent Quant: 3 Reasons Why PepsiCo/Primo Water Is An Interesting Long/Short Story

Market-neutral trade: Going long PepsiCo at the same time shorting Primo Water. Going long PEP: Current price as of 2/8/17 is $105.69. Average fair value estimate is $134.81. Magic Formula numbers are ROC of 60.05% and earnings yield of 5.64%. Shorting PRMW: Current price as of 2/8/17 is $15.11. Average fair value estimate is $7.33. Magic Formula numbers are ROC of 21.11% and earnings yield of 2.22%. Estimated return is 5.99% or 4.21% yield over and above five-year U.S. Treasuries. For in the depth article, please see: https://seekingalpha.com/article/4044863-intelligent-quant-3-reasons-pepsico-primo-water-interesting-long-short-story