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Varchild2008 (85.90)

Dr. Stevia and Mr. Snapple

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December 18, 2008 – Comments (3) | RELATED TICKERS: DPS

So... Dr. Pepper makes an announcement that they are nearly ready to release their first Stevia beverage drink to compete with whatever Coca-Boring-Ola and Wepsi are releasing.... Share price shoots up 5%..... Still about 5% up as I am tying this. 

What is Stevia?  It's an herb basically... Some leaf grabbed, mixed into a drink....from somewhere in the great continent of Africa...And why should anyone care?  Works like Splenda and Equa for reducing calories, but it is an all natural ingrediant.  "Whole Foods" would be proud if they had any stores left!

Moral of the story is that it pays to be a Dr. Stevia and Mr. Snapple investor.....
Oh and the other coin flip is "HANS" Blix Corp hasn't made a Stevia announcement.  Apparently, "HANS" Blix is still trying to produce the next cover art for their next batch of Monster Energy Drinks in a Can.

I sold all of my shares and bought em all back at the nice $15 range a few days ago.  This allowed me to enjoy the ride up knowing all 290 shares were for a much cheaper price than they will be in the future (considering that the IPO was $26.50).

Now investors today in Dr. Pepper Snapple Group, if they did what I did, have shares at a price enormously cheap for a multi-billion corporation that is building a massive facility in California to push out all of their beverages.

Dr. Stevia / Snapple   may have been Dr. Hyde since it's IPO.....Crashing down as low as $13.44 or so.  But, after the share price hit bottom it has been a nice, steady, climb up.

Recently in an investor conference it was revealed that the C.E.O. Larry Young will not make any new acquisitions (nothing major at least).  However, he will use the money to pay down debt and buy back shares.

When it comes to long term investing isn't that what you want out of a company?  Steady growth, declining debt, share buyback?  Acquisitions are always nice but not when a company has a debt to pay down.  Dividends are also nice and DPS doesn't offer those.  But, as soon as that debt goes away...The closer we get to the announcement of Dividend payments to shareholders. 

Not a DPS investor?  Why not?  Mr. Hyde is gone... for now.

3 Comments – Post Your Own

#1) On December 18, 2008 at 1:32 PM, torque63 (< 20) wrote:

Nice post. 

Diabetics and health conscious consumers (a growing market these days) should embrace the "stevia" movement.

Within the next few years, I expect xylitol to become the primary sweetener in soda beverages. Virtually identical to sugar but with one less carbon atom; in short, it won't spike blood sugar levels.

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#2) On December 18, 2008 at 6:23 PM, DemonDoug (34.84) wrote:

So basically, you are still pumping DPS, but in reality you are just short-term trading it.

Why even bother with the "DPS is teh hotness stock ever!" blogs if all you are doing is trading it?  If we had listened to your advice people would have been buying at 20-22, and if they didn't sell as you did in a trade, they'd be out quite a bit of dough right now.

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#3) On December 19, 2008 at 10:44 AM, Varchild2008 (85.90) wrote:

Uhm no.  Not trading it.

I've written throughout my blog numerous times that I "Pair my losses" on my investment choices.  Do so on AMAT for example.

If I know a stock is getting hit and has gone down alot on me.. I sell my stake... to buy it back a short term later.

And frankly... I can say whatever I want on a blog regarding what I invest in and what I don't invest in because blogs are opinions... and well these are my authentic opinions.

I do not think DPS deserved the punishment it got based on their earnings reports in 2008.  But, lots of stocks got unfairly punished in this market.  To NOT pair your losses is ludicrous in my opinion.

I've gained back $4,000+  doing whatever I could to pair my losses here.  DPS fell from $26 to $13 and to sit and do nothing but watch that happen is not smart investing.

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