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Nelson Peltz Talks Pepsi, Family Dollar, Bank of New York Mellon

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Activist investor Nelson Peltz made waves with comments at the Delivering Alpha conference regarding several stocks in which he has positions.

 

Pepsi

A long-time holder of Pepsi (NYSE: PEP), Peltz boldly stated that he may engage the board in a proxy battle. Peltz has long been seeking a drastic reorganization of the firm to unlock value.

With Pepsi shares trading at $90 after Peltz opened his position around $60, one would think that he has been successful with the position. However, he claims this is not the case. Peltz explained that the stock has not risen in value because earnings have increased, but because other investors are starting to realize the value that could be unlocked in the kind of reorganization he advocates.

Surprisingly, shares of Pepsi did not move when Peltz said a proxy battle may ensue. Shares closed at $90.50, up 0.18 percent on the session.

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Family Dollar

Family Dollar (NYSE: FDO) has received a lot of attention in recent weeks after Carl Icahn announced an activist position in the stock. Not only is Peltz a major stakeholder, but he is also a board member. Peltz said he prefers taking a less public route to company turnaround than Icahn.

Peltz further stated that he is not satisfied with Family Dollar’s performance and noted lags  behind Dollar General (NYSE: DG). Peltz claims Family Dollar should be able to achieve similar results.

Shares of Family Dollar popped slightly higher during Peltz’s session and closed at $61.43.

Bank Of New York Mellon

One of the other positions highlighted by Peltz was The Bank of New York Mellon (NYSE: BK). Warren Buffett has been a long-time holder of the stock.

Peltz emphasized his history investing in financial institutions, stating that almost all firms have doubled in value. Shares of The Bank of New York Mellon popped higher on volume while Peltz discussed his bullishness on the stock.

Posted-In: Carl Icahn Delivering Alpha Nelson Peltz PepsiHedge Funds Top Stories Trading Ideas General Best of Benzinga

 

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