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Varchild2008 (84.37)

Varchild issues SELL recommendation on shares of (DPS)



March 09, 2010 – Comments (1) | RELATED TICKERS: DPS

1)  I AM NOT an analyst.. you know one's that don't read Stocks for Dummies books and actually get paid to BLOG about stocks?


2)  FULL DISCLOSURE  I own 526 shares of DPS.

Ok... so I am saying, glancing at DPS's ridiculous climb.... and I have to say....  This is OVERPRICED.

I think this one is fairly valued at around $32.50 - $33.50.  
It closed at $33.47 but hit an intraday 52-week high of $33.93.

DPS a $34.00 stock???    not yet!!!!  not yet!!! I say....   

DPS at nearly 15.5 P/E is fairly valued.... any higher..say touching $34.00 and this is just plain PIGGY PIGGY PIGGY  OINK OINK OINK  SNORT SNORT SNORT.

I have no plans on profit taking DPS as we are very close to the Dividend EX date and frankly I don't profit take a stock I have declared as a "RETIREMENT STOCK."

DPS remains my biggest $ investment in my portfolio.  It will always carry a larger $ value than any other investment I get into.... This one's a retirement stock... It's a KEEP FOREVER stock in a sense....

With that said.....  While I'd be thrilled to see DPS @  1 Million $  per share of stock....

We have to realize something....  DPS growth is not in the ballpark of HANS.... It is solid growth to be sure but it is not a HANS growth.   So I say 15.4 / 15.5 P/E  is fairly valued....  

I'd profit take right around here expecially if it starts to go higher tomorrow.....  That is only speaking to "STOCK TRADERS" out there...

And realize that I am a moron here.... an idiot...  This analysis really is only based on 2 things:

1)  3 Month RSI is near 80% now.


2)  GUT FEELING tells me that $34.00 before we get the Q1 earnings report is premature.

I fully expect Q1 earnings to CRUSH estimates..... *pun intended*  

I really really do.... going forward DPS will beat earnings or at least match near the high estimates.
But, given that....looking at the Scottrade Earnings Chart....  This one needs to slow down and go sideways for a bit....pullback a little....  WOAW Horsey... WOAW!

Disagree with me on this?  Think it should go to $40.00 before we get the Earnings Release?

1 Comments – Post Your Own

#1) On March 11, 2010 at 11:34 AM, TSIF (99.98) wrote:

DPS is still a buy at $34.  How can you be long on DPS, but base your overpriced status on such a short term window. You suggest they will crush in Q1 and they are a growth stock and the P/E is reasonable at 15.  While selling a stock that gets ahead of itself, or not dollar averaging in further for awhile is good practice, your agruments do more to say buy DPS than they do to say sell.   I'm opening an upthumb position here at $34.   New 52 week highs are hard for investors to get behind as they think they've missed the boat.   This is typically a mistake to think that some companies don't deserve new highs.

Great call on your entry.  Good luck with your position!



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