What's the Big Deal with Concentrate?
Dr. Pepper Snapple Group is at its 52 week low. Trading for an obscene $22 and whatever cents.
Analysts have come out of the woodwork to include Seeking Alpha, claiming the stock is waaay oversold due to DPS's concentrate business.
I happen to agree. But, I happen to not care either. I am not ready to take the plunge and buy more shares of DPS yet so I'm hoping this stays oversold for at least a few more weeks.
Nonetheless.... Here's a quick explanation of DPS's concentrate business:
1) Snapple Products
2) Welch's Grape Juice products
3) Schwepps Juice products.
All of which are huge brands, sold in all of the grocery stores. Hugely popular in the Midwest.
So, I am definitely salivating over 2010 as the year DPS really breaks out. Once that California Facility gets built and DPS can start shipping out product to tens of millions of new customers.... Investors will go nutz over DPS.
In the meantime.... A DPS investor must use this wonderful oversold rally on DPS to scoop up shares and hold 'em. I'd not bother to fret over the stock price unless 2010 strangely is a down year.