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Varchild2008 (83.79)

I nailed DPS's Share Price Action!



May 13, 2008 – Comments (2) | RELATED TICKERS: DPS

Proud to say that I absolutely NAILED DPS share price action.

I wrote an article which got a lot of attention to include a mention from Matt Koppenheffer.
If he's reading this article here's the lowdown...

Articles surfaced Day 1 and 2 on DPS that investors of CADBURY who received shares of DPS were selling off their DPS shares....Mostly because they failed to see the value of DPS.

Patience was needed and I told everyone to stay out until MONDAY.  So what happened yesterday and today? 

We have enjoyed some good gains as DPS heads to $26 a share by  close of tomorrow.  After hours trading tonight already has DPS  over $26.  3 days to go up +1$?

I think the pace accelerates as more bargain hunters jump on board.  I am a believer in the $30 price target of DPS either next week or the week after. 
I believe in DPS as a long term play so if we see DPS at over $28 a share.... Expect the RSI to be in the overbought area.  DPS at $30 means a sell-off soon.  Don't miss out and become the investor who buys DPS at $30.  Buy in NOW before it hits $28 as analysts are mostly targeting the share price at $32.  Of course a DIVIDEND initiation changes all that!  (if only DPS would do it soon)

P.S.  I extend my GENCOR Dividend pleading today and also include DPS.  We (should) get a small dividend from this company, America's 3rd llargest beverage company.  What gives DPS?!

P.P.S.  I no longer choose Coke or Pepsi at McDonalds.  I always get Dr. Pepper :-)   Anything to inflate Dr. Pepper Snapple Group's earnings reports :-)  Maybe I'll buy 4 crates of Snapple Drinks next week :-)

However, there are 4 things I look at in a chart that any investor should look at....

1)  Parabolic SAR
2)  Simple Moving Average
3)  Bollinger Bands

and of course the tried and true

4)  RSI

Pay attention to the RSI because I am testing a theory that has worked for me.

My formula for figuring out a stocks "True Value" is this  (but I apologize because I did not use this formula on TRA or CAGC so my previous article below is pure emotional and no logic):

Stock Price Percentage falls 5%.....RSI falls 10%.....   Oversold by 5%
Stock Price Percentage Falls 10%   RSI fall 5%....      Overbought by 5%

This formula is completely made up, off the top of my head...don't use it.
However, I used it for FEED when it was $15 a share.  I said the true value was $21-22 a share.

It's skyrocketed to $19 a share in a single day.  It is hovering around $19 a share.

My fomula may be off by a couple dollars which is a gigantic percentage here.  So.... I donno....
Maybe FEED will hit $21-22 a share this week Friday and redeem my crazy formula.


2 Comments – Post Your Own

#1) On May 13, 2008 at 11:16 PM, FleaBagger (27.43) wrote:

I can tell you're getting too excited.

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#2) On May 14, 2008 at 6:13 PM, Varchild2008 (83.79) wrote:

Hey, I'm having loads of fun with the stock market!  Just got my Steel Stock dividend today and will rake in a few more dividend cash in the coming weeks. 

I have a lot to be excited about!

When GENCOR took a massive dive I didn't really care much because I strongly believe RESEARCH defeats any obstacle the market throws at you.

The age old rule "Don't fall in love with your stocks" is absolutely a good rule.  However, one can and should find some safe(R) stocks that they won't mind going LONG TERM and not micromanaging constantly.

I am excited about Dr Pepper (DPS) and GENCOR (GENC) as stocks I don't have to micromanage like I do just about everything else.

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