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Varchild2008 (84.31)

Dr. Pepper Snapple achieves 5 Star Caps Status!



August 19, 2008 – Comments (2) | RELATED TICKERS: DPS , MNST

I've been an investor of Dr. Pepper Snapple since it's IPO release.  You know.. back when Motley Fool's quickly gave it a 3 Star ranking and All-Stars piled on it as a bad investment.  Gee? Where have all the Underperforming All Stars gone?  Just 1 left.

My stake in DPS started at a mere 30 shares and has already grown to 165.

I guess this calls for a Celebration and what better way to celebrate than to break out a Snapple Apple... or a Snapple Pink Lemonade?  Or maybe down a Snapple Raspberry?  Strawberry? Mango Madness??  Arrgggggh  choices...choices....choices....Oh I know!?  I'll suck down a Venom.

Unfortunately for investors who have stayed away from DPS and kept their noses up at the stock here's the situation for NEW BUYS (A.K.A. DPS  NEWBIES):

1)  DPS is long overdue to sell-off.  RSI is above 70 over the past 3 trading days.

2)  DPS has been artificially inflated a bit from an onslaught of buying by Hedge Funds, Gurus, Big Pocketed folks.

Personally... These Big Pocketed Folks needs to settle down.  We don't need to achieve Standard and Poor's $27 target in a week!  (sheesh).  S&P calls it a 12 month target for a reason!  It should take just about 12 months!  Not 12 Minutes!

My prediction for a good DPS entry point into this stock is $23.
This thing strikes $26 but comes down to $23 before recharging and lifting off to $27.

2 Comments – Post Your Own

#1) On August 19, 2008 at 9:00 PM, DemonDoug (31.36) wrote:

HANS is a better buy IMO.  DPS only under 18/share. 

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#2) On August 20, 2008 at 5:08 AM, Varchild2008 (84.31) wrote:

HANS may be a better buy but I am not thrilled about investing in a 1 drink wonder.  As soon as the FAD dies down the stock crashes and re-valuation troubles already struck HANS down from $60 to $21.  Given it's current resistance around $30 and it's share price around $28, I think DPS is the better buy now.

DPS has about $4 to climb while HANS needs to get past the $31 barrier.  Granted, I think HANS will at some point.

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