Stalking a Slow-Moving Short
Not every chart that catches my eye for a potential short has to be a highflier or former highflier. Case in point: Pepsi (PEP). Personally, this is a hard one for me, since I am a devout Mountain Dew drinker and prefer Pepsi over Coke. Personal preferences aside, Pepsi looks to have some problems in front of it from a technical perspective, but it is also dealing with the yield-chase trade, which has become very crowded.
No one is going to confuse PEP with a growth stock. If you are buying PEP, then more than likely you are looking for the 3% yield along with a defensive play. That being said, it can make for an interesting short for that very reason. It is unlikely to just skyrocket higher, as it seldom falls in with the momentum crowd. In fact, the mo-mo crowd is much more likely to chase after Monster Beverage (MNST) or Dr Pepper Snapple (DPS), the latter of which is my preferred play in the space. Heck, I think even Coca-Cola (KO) is likely to attract the momentum players before PEP....311 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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