Global Value Investing

[throwerw]

PBG/PBN

Sometimes when you think long-term, things work out much quicker than expected.

Since 12/19, PBG is up 50% while PBN is up only 25%.

This was the original trade:

Short 103 shares PBN $1214
Long 100 share PBG ($899)
Cash left over $315

This is where is stands now if you close out the trade:

Cover 103 shares PBN ($1,504)
Sell 100 shares PBG $1432
Dividends paid ($16.50)

Cash left in your pocket $226.50

Not bad for a risk-free trade, but I think it gets better if you hold for a few more months. PBG now has net cash at the parent level, and is accumulating more PBN shares through the DRIP.