In my previous post on the Allied-Ares merger arbitrage opportunity, I introduced a topic which I realized I’ve never quite talked about here on The Curious Investor. As I intend this blog for both beginning investors and seasoned investors alike, here’s a run down on the concept of merger arbitrage.

What is arbitrage? Rigorously speaking, arbitrage is the practice of taking advantage of a price differential between two markets which allows the arbitrageur, or person taking advantage of the arbitrage, to obtain a risk-less profit.

Technically speaking, an arbitrage refers to a situation where the same asset sells for a different price in two markets. For example, a textbook in the UK selling for $20 and a textbook in the USA selling for $100. The arbitrageur would buy the UK textbook and simultaneously sell the USA textbook and pocket the $80 difference.

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Pepsi has recently opened its new plant in Chengdu, the capital of Sichuan province, marking a new stage for the company's development in China's southwestern areas. Ken Newell, the chairman for Pepsi China and president of Pepsi Greater China, told local media that the company is very confident in the development of China's southwestern areas and [...]

Coca-Cola’s Secret Ingredient To Success Revealed

Tony Daltorio, Investment U Research

Today, let’s talk about a company that has:

The most widely recognized brand name in the world. A 10% share of the entire global market for non-alcoholic beverages. A monopoly on the very definition of a multinational corporation.

If you guessed The Coca-Cola Company (NYSE: KO), then you’d be right.

Don’t expect those accomplishments to dim anytime soon either. It should continue quenching investors’ thirst for a safe, profitable purchase.

The all-American company reached and maintained its number-one status by adhering to the same successful formula for decades. And I don’t mean its top-secret cola formula, though obviously that doesn’t hurt.

For that matter, neither does belonging to an industry of consumer staples. Soft drinks are notably resilient in economic downturns.

But Coca-Cola has more going for it than just a hugely successful product. It also has a business

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Chinese stocks rise 5%! Risk Assets follow! OECD forecasts faster global rowth…Gold & Silver kicking sand again! And Now… Today’s Pfennig!

Good day… And a Tub Thumpin’ Thursday to you! Let’s hope it remains a Tub Thumpin’ Thursday later today, as I head downtown to watch my beloved Cardinals play a day game! For those of you who are baseball fans, you know what I mean when I carry on about how baseball should only be played during the day!

OK… Before I get to the currencies, economies and the dolts in the world, I wanted to briefly talk

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Sometimes in investing there is a tendency to over think things, to get bogged down in the details, to lose the forest through a close study of the trees. It is not that such matters are irrelevant, but that if you get the big major questions right you will be most of the way there. Unfortunately, most investors tend to avoid even asking the big really important questions, or at least don't act on them. The big questions really tend to boil down to what sectors you should be investing in. Yet, many investors simply rely on indexing instead. Even worse, those that do not explicitly index often invest in mutual funds that "closet index". Investment managers will do that because there is a big premium put on not being too far away from the "bogey", usually the S&P 500. Sure, it's great if they are ...

PennyOmega.com Stock Report!

PennyOmega.com Hot Stock News & Alerts!

 

Monday August 24, 2009

PennyOmega.com Stock Report!

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SKINNY NUTRITIONAL CORP. (OTCBB:SKNY), the creators of Skinny Water(R) and a leader in the zero calorie enhanced water category, announced today that Michael DiOrio recently joined Skinny Water as Vice President of DSD Sales for the Western region in the US. Mike is a beverage veteran with over 20 years experience in the industry, specializing in start ups, most notably as one of the initial hires for Snapple Beverage Company. He began his career with Pepsi Cola, in Upstate New York, and was instrumental in assembling DSD networks for the launch of Nescafe RTD Iced Coffees with Nestle USA and the

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Coca-Cola Co. (KO) and its bottlers are planning to invest more than $5 billion in Mexico over the next five years. The investment is primarily targeted at developing infrastructure, technology, social and environmental programs, marketing, training and products with special emphasis on employment generation.   The new investment is expected to revive Mexico’s economy, which is facing the brunt of the recession due to reduction in imports by the U.S., its primary trade partner. Further, a decrease in tourism due to the swine-flu epidemic has worsened the condition.   Recently, Coca-Cola established a new plant for a juice company Jugos del Valle in Tepotzotlan , Mexico . The total investment for this plant amounted to $200 million, which is expected to generate employment opportunities for about 1,500 people. In addition, the plant is expected to have 20 bottling lines and an annual production capacity of 140 million beverage crates. 

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OK, folks, this has gone far enough.  There's no need for the United States and Europe to continue in their unchecked and outrageous aggression against Russia, renewing Cold War tensions and antagonism, no matter how jealous they are of her powerful resurgence.  Sure, sure, I know:  Russia has been running its nuclear subs up and down the coasts of Canada and the United States, flying bomber patrols, stealing the arctic, proposing to stick missiles 300 miles from Berlin, arming Venezuela to the teeth, and diplomatically insulating everyone from the Sudanese, Burmese, and Iranians from any international action. Those lefties can talk all they want about the long string of murdered journalists and human rights critics - big deal!  Other russophobic extremists ...

Since I recommended PepsiCo Inc. (NYSE: PEP) on Oct. 20, the stock has greatly outperformed the market, up about 10%. 

However, the stock has underperformed since the market began its rebound on March 10. And since the end of March, Pepsi’s shares have lagged those of arch rival, The Coca-Cola Co. (NYSE: KO), since the end of March, as well.  I recommended Coca Cola last week after the company reported stellar growth in the emerging markets.

While Pepsi’s less-than-stellar performance is not yet a major concern, the trend is discomforting.  In addition, there has been a major divergence in the strategies of these two companies.

While both Coke and Pepsi divested of their bottling operations many years ago, Pepsi just agreed to buy back two of them: Pepsi Bottling Group Inc. (NYSE: PBG) and

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Since I recommended PepsiCo Inc. (NYSE: PEP) on Oct. 20, the stock has greatly outperformed the market, up about 10%. 

However, the stock has underperformed since the market began its rebound on March 10. And since the end of March, Pepsi’s shares have lagged those of arch rival, The Coca-Cola Co. (NYSE: KO), since the end of March, as well.  I recommended Coca Cola last week after the company reported stellar growth in the emerging markets.

While Pepsi’s less-than-stellar performance is not yet a major concern, the trend is discomforting.  In addition, there has been a major divergence in the strategies of these two companies.

While both Coke and Pepsi divested of their bottling operations many years ago, Pepsi just agreed to buy back two of them: Pepsi Bottling Group Inc. (NYSE: PBG) and

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