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Varchild2008 (85.34)

Varchild DOWNGRADES (DPS) Best Stock on Earth



August 24, 2009 – Comments (0) | RELATED TICKERS: DPS

That's right.. I have to step in and shout *STOP* cause no one else is yet.  I am doing this on my BIGGEST investment in my portfolio... The Best Stuff on Earth (DPS) is getting a Varchild2008 Downgrade.. Just as I downgraded ATVI months ago when it struck $13.00 before it's Q2 earnings...

I am downgrading (DPS)  from my previous STRONG BUY opinion to now a SELL.

For long term investors this means (HOLD) your shares of DPS.... For those who just wanted to ride the DPS bandwagon for a short period of time.... Now is a great time to take profits on DPS...

DPS should not be trading higher today... It struck $27.50 and went beyond... to $27.56. 
I strongly believe DPS fair value is $27.50.

One of my main concerns for this severe downgrade is that while YES I love the 2-4% growth expectation and I love the sales volume growth.... What I don't like is commodity costs rising at a much faster percentage than DPS's expected growth rate this year.

I predict oil to easily hit and perhaps surpass $80 a barrel next year.  It may strike $90 before pulling back some next year. 

You can't really at this point in time trade up DPS as if you are buying (HANS).  Why?  Even though DPS beat HANS in Q2.... It also missed HANS in Q1 by a bigger margin than the 2 cent EPS beat.  This makes DPS have to work harder to match HANS on an annual EPS.

Therefore... DPS does not deserve to trade at $30.00 a share yet... not at this time....

HANS unlike DPS gets to sell their drinks world wide.  DPS doesn't....They have nothing in the Eastern Hemisphere.

So.... Lay off the DPS.. *geeze*  CHILL folks...  Goldman Sachs said it best... You are getting GREEDY!

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