Glenn Curtis hates DPS: But he only Skim Read the DPS Story
Glenn Curtis doesn't like DPS stock in favor of old and boring Coca-Cola, Pepsi.
Fine whatever.... Why doesn't he like DPS?
1) DPS has an 8% expected annual growth versus about 10% for Coke and almost 11% for Pepsi.
2) DPS 1st Quarter report shows a volume decline that without price increases DPS would have missed analyst estimates and not be able to make their $1.91 earnings per share target for the year.
Ok.. Great .. Wonderful....
How many people besides Warren Buffet invested in Coca Cola when that company first started out? When it first started out it had competition from Moxie Cola, RC Cola, Dr. Pepper, etc.
Coca-Cola's story goes on and they are ultimately successful and the stock splits a bizzilion times. A fun...great...fantasy story.
Well.....I grew out of Fairy Tales a long time ago. I am in grained in reality.
And the reality based self tells me that there's a lot more to a company than it's current situation.
Let me make it short and quick:
1) DPS doesn't sell to anyone except Carribean, America, Mexico, Canada. Imagine if it sold its drinks to 25+ other countries 10 years from now?
2) DPS's price at $24-26 is its true value. There will be times where the price fluctuates down due to economic troubles. But, ultimately.... What company has the best potential growth aspect?
Coca-Cola's Story is a great one but it's peaked... it's had it's day... Same with Pepsi....
Why can't we have a successful THIRD PARTY? We may not be able to have a successful THIRD PARTY in America, but globally...it's possible.
3) When GLENN wrote his article he must not have written it with the knowledge of DPS revealing their new "VENOM" energy drink. I personally see potential in this drink. It certainly looks far better than DPS's "Snapple Antioxidant Water" idea.
DPS is not sitting on its laurels folks... 2 brand new products introduced in almost 1 single quarter.
DPS is learning to get its feet on the ground and investors just need to be patient.
I'm in DPS.. building my shares all the way till I retire. I am in it for the long haul. I expect to do quite well building my shares in DPS for a long period of time.
My position in DPS (as this is DPS's first year) is that I want DPS to miss earnings reports and plummet and fall and do badly initially so I can scoop up shares on the cheap. I have faith that no matter what.... Given the fact that DPS can expand itself easily into other countries that perhaps DO LOVE carbonated and non-carbonated DPS beverages.... I won't be screaming in terror if DPS misses it's $1.91 target.
I have 2 words for DPS Investors