Second Exit on PEP

Bottling Group Sparks Rally

By Bryan Bottarelli
Tuesday, July 11, 2006 10:22 AM EST
Tue, 11 Jul 2006 15:22:00 GMT

Dear Bottarelli Research Member,

Today, Pepsi Bottling Group (PBG — NYSE), who is world’s #1 producer of Pepsi-Cola (PEP – NYSE), raised their earnings estimates for the full year. The company now expects a net income of $2.00 to $2.06 a share — which is higher than Thomson First Call’s consensus estimate of $1.86. This news has helped push shares of PEP to a new 52-week high at $61.44.

PEP

Yesterday, I recommended selling the PEP October 60 calls (PEP JL) prior to this Thursday’s earnings announcement. If you are still holding these calls, you’re getting a great second exit opportunity today, as they’ve traded as high as $3.00. If you have yet to sell the PEP October 60 calls, you may consider taking your profits off the table now! Hold all of our other positions — as I’ll give updates as the situations warrant. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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