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Varchild2008 (83.81)

After Closing Bell Analysis of DPS Share Price Action...



August 27, 2009 – Comments (0) | RELATED TICKERS: DPS

Based on DPS Share Price action this week.... (DPS) gets a buy signal from me.

I say *good* that DPS finishes down at least SOMETHING... I wasn't hoping for $26.50 ish...or lower...

But... whatever... The Share price drops only 11 cents or so..basically was trading sideways all day long.  I don't think Investors want to see this stock sell off much at all tomorrow.

Generally....over the past year the sell offs have mostly been 4 straight days of sell off and then back to buying!

This Stock just FEELS like it wants to go higher to me...  So... what the heck.. Can't fault investors if they want to send the stock up and start doing some buying on FRIDAY to take the price up into the weekend.

Of course you would be doing it ahead of August Unemployment Numbers  September 1st.

So, I'd still wait to see Pre-Market if there is going to be another good DIP to the stock before pulling the trigger.

Q3 earnings report is quite a ways out.... So I think this one goes to $28.00 easily between now and the conference call.  At $26.86 you have a good $1.14 if I am right.. And certainly if the company does unexpectedly well and beats earnings estimates for Q3 then the price is justified to trade to $30.00.  That would be $3.14 gain.

I've been telling all my Co-Workers about how great a stock DPS is... and Bottling Companys like (CCE) (PAS) (PBG) as well.... Bottlers kick butt.... 

I think buying DPS prior to Unemployment numbers and economic numbers on Sept. 1st is extremely important because the FEDs love to *fudge* the monthly unemployment statistics by extrapolating seasonal stuff to try to get a better number...

So... I'm not sure I can sit here and believe anymore that DPS is going to shrink it's RSI to 55%.

It would be nice... I'd love to see the stock at $25.00 to give *NEW* Investors a chance at the stock below its IPO price of $26.50.   But, I do not think this ever trades below its IPO price again. 

That's the trouble with NOT buying DPS tomorrow.  Do you sit and hope for a sell-off to not touch $26.49 and end up triggering a mass buying opportunity among mutual / hedge funds?

DPS has earned the right to have a share price ABOVE  $26.50   (period)  until it misses an earnings estimate.... or simply fails to BEAT one.  Until then...  Any dip below $26.50 is going to be recognized as a buying opportunity by virtually everyone....

I'd probably dump one of my stocks and send the cash into DPS if it does that.

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