Cramer's Coke & Pepsi Challenge

On tonight’s MAD MONEY, Jim Cramer said that DJIA 13,000 is just a prelude to DJIA 14,000.  He even thinks you could see a 400 point to 500 point day soon.  Because there is no supply and since S&P 500 stocks are moving like small cap stocks, he is in love with the market.  Now there are buyers for any size if blocks come out for sale.  Trading desks are trying to get stock to buy and they can’t.  He thinks that people and management matter again, and sometimes a new CEO can make an immediate difference.

Cramer sees two behemoths winning from new management:  Coca-Cola (KO) and PepsiCo (PEP) are both worth buying and the strength of the CEO’s is helping to drive this.  Coca-Cola was dead money for long enough, but Neville Isdell came back and took the helm for new marketing and new brands.  That’s why it went from $38 to $61+ and Cramer said KO is not done going up because of huge growth in Europe, Asia, and Latin America.  On PepsiCo, Indra Nooyi came in and took Frito-Lay up with healthy snacks and started regrowing the unit to the point that they are maxed out on production versus demand. Cramer ended by saying Coca-Cola is headed to $60.00 and PepsiCo is headed to $75.00.

Jon C. Ogg
April 25, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.