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Varchild2008 (85.82)

Don't MISINTERPRET MY BULLISHNESS on DPS!! DPS = dead this year

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June 26, 2008 – Comments (2) | RELATED TICKERS: DPS

Just want to correct DemonDoug and any one else out there thinking I am overly bullish on Dr. Pepper Snapple Group.

Look.. I like the company's future.  But my sights for earning any kind of Profit on DPS is frankly set on "hold" until 2010.

Anyone getting into DPS today thinking they'll do well by the end of this year is incredibly misunderstanding my words.

Look.. The California Factory won't be in operation until 2010 and given the Decline in Sales Volume and the lack of Food Products or Baby Food Products and Lack of International Sales.....

DPS needs a Catalyst for the stock price to go up.  That catalyst (unfortunately) won't happen over night.  It happens in 2010.

So investing in DPS is simple from where I stand. 

I plan to slowly scoop up shares of DPS especially when I see the stock price plummet dramatically.   If I have some money to invest... I'll buy DPS this year and next year.

But... I do so knowing full well that my profit is 2010.   I never said DPS is going to be huge next week or next month.  If I mislead people to believe that that's what I think then I will be careful with my words from now on.

2 Comments – Post Your Own

#1) On June 26, 2008 at 7:12 PM, IBleedConcrete (31.08) wrote:

What do you think of the thousands of investment vehicles which are likely to give you returns before 2010?

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#2) On June 26, 2008 at 8:00 PM, DemonDoug (32.71) wrote:

I'm just wondering why you are so bullish in general.  Even with the CA factory, it's not like there won't be Dr. Pepper on store shelves.  I mean, I can see dps at 30, sure, but I'm just not seeing them as a high growth business, especially with the debt laden onto them.

Are they planning on paying a dividend?

I guess I'm just wondering why DPS and not another stock.  I know we all have our favorites, the economic environment just doesn't seem to favor them over the next few years even. 

I think I'd rather be setting my sights on either the classics, KO or PEP, but actually if i had to buy a beverage maker right now it would be HANS (you'll notice the green thumb on my caps page).  I don't see a real compelling bullish argument for DPS.  I think they'll hold their own.

Can you explain to me why a california factory will make them more profitable?

(BTW, I didn't mean to imply you were a short-term trader.  I'm just trying to understand the bull case.)

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