NEW BULLISH Plays
Dr. Pepper Snapple Group - DPS - close 37.71 change +0.89 stop 35.93
Dr Pepper Snapple Group, Inc. (DPS) is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a varied portfolio of flavored (non-cola) carbonated soft drinks (CSD) and non-carbonated beverages (NCB), including ready-to-drink teas, juices, juice drinks and mixers. The Company's brand portfolio includes CSD brands, such as Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Crush, Squirt, Penafiel, Schweppes and Venom Energy, and NCB brands, such as Snapple, Mottâ€™s, Hawaiian Punch, Clamato, Roseâ€™s and Mr & Mrs T mixers.
Target(s): 38.85, 39.95
Key Support/Resistance Areas: To Follow
Time Frame: 1 to 2 weeks
Why We Like It:
DPS has been a relative strong performer throughout the recent market sell-offs and has also been the subject of takeover chatter in recent months. Technically, the stock has formed rounded bottom over the past month which signals a shift from sellers to buyers. The stock is on the verge of breaking out higher and I suggest readers initiate long positions in the stock on any weakness using $37.30 as a trigger. Our targets are +4% and +7% higher. Our stop is below the recent swing low at $35.93.
Suggested Position: Long DPS stock if it trades to $37.30
Annotated daily chart:
Entry on September XX
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on August 31, 2010