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Varchild2008 (83.79)

Let DPS drop some more... Not time to buy yet!

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August 27, 2009 – Comments (2) | RELATED TICKERS: DPS

When it's time to start buying DPS again.... I'll post the announcement.

Not time yet...

RSI:  69.65%     Goal:  RSI: 55%

Share price should drop at least to $26.50.    Then.. *buy* *buy* *buy*

Reason a severe pull back in DPS is perfectly warranted?  How about this:

1)  Q3 2008 = Earnings Miss  and never stronger than Q2 sales.

2)  Recent Announcements  will better influence Q4 sales rather than Q3 regarding the Dr. Pepper College Football contests.

3)  No word / news  yet regarding HyDrive Energy & Chew success or no success in current push out.  Q4 will be better for that anyhow as that needs more time to get distributed out.

In other words.. This ain't the right time for $30.00 a share that I am seeing Options on the CALL side for.

DPS will go into the 30s next year..   I'd try to get into DPS as LOW as possible to maximize gains when it touches $30.00.


P.S. (ATVI)  Varchild bought yesterday into the GLOOM... Share price pullback was unjustified... Purhcased at $11.73 moves my Ceiling Buy Point up from $11.48.

2 Comments – Post Your Own

#1) On August 27, 2009 at 10:17 AM, Varchild2008 (83.79) wrote:

CLARIFICATION  *SORRY*

I stand by that I am not going to say what share price is a buy on DPS.. I am not..

Consider $26.50 ONLY as me guessing about whether RSI reaches 55% at that level.

I am more interested in a reasonable RSI than $26.50. 

I can see DPS dipping to $25.90 ... It could... whatever it takes for Buyers to get re-charged.

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#2) On August 27, 2009 at 10:25 AM, Varchild2008 (83.79) wrote:

This is how the game is played.... But more importantly...

(DPS) is a solid...solid...business...  And therefore I don't want this one leaving the train station and putting prospective buyers on the sidelines.

This is why I don't really mind my other stock (ATVI) constantly falling to an $11.00 handle.  This allows buyers like ME to keep increasing our stakes slowly.....perhaps lifting our interested ceiling prices..

Ceiling price = Most expensive price in which I would impulsively pull the trigger. 

When I saw ATVI dip yesterday I was *shocked* cause this got NO PLAY from the PS3 price cut or XBOX elite price cut rumor which is now been proven true.

Well... I can fret that ATVI's share price is going sideways....
Or I can increase my stake everytime it gives me a *GIFT* by dropping to an absurd level.

In regards to DPS... $26.50  is not absurd when I feel $27.50 is fair value.   That provides a good BUCK+  below the 52-week high price..thus a reasonable profit for those quick investors who want gains right away. 

That sure beats chasing momentum stocks up.

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