Don't Buy Dr. Pepper Snapple Group . . . . . . Yet!
I'm giving DPSw the 5 day Jim Cramer rule. Don't buy until this stock at least until it gets it's feet wet.
Unless the stock drops over 20% today and you day trade to pick it up on this gigantic dip... Don't bother with Snapple for at least until next week Monday. Prefer Tuesday.w
Yes, it is 7up, Dr. Pepper, Schwepps juice, Snapple, country time, Canada Dry, etc.
I am personally drooling over the stock this morning. But, don't invest on emotion! Let's see where the stock is headed...How it closes....How it trends.
Read the RISK statements in their report. DPSw opens up with a massive debt it has to pay off.
I fully expect the volume for DPSw in the outset to be very high around 3-5 million shares traded today/this week. You have to assess based on financials, investors buying shares, how long will it take for DPSw to get out of debt?
You have to go into DPSw for the long haul. I am not looking at a h uge profit here in a short term investment no matter what dip you buy in at.
DPSw is going to be a solid investment people like me that are still too heavy in 1 sector and want to diversify into a Beverage stock. Personally, though, I see no problems with having more than 1 beverage stock in your portfolio.... But no more than 2. Pepsi + Snapple to me is not so anti-diversification that it would hurt more than help. Beverage companies tend to be slow growth large caps that depend on foreign sales more than domestic.
BUT! One thing great about beverage companies like DPSw is that they are RECESSION PROOF!