Dr Pepper Snapple Group Inc: Who Cares?

DR PEPPER SNAPPLE GROUP, INC. (NYSE:DPS) starting trading yesterday on the NYSE and Wall Street could care less.  Hard to believe but they are the 3rd largest beverage company in the U.S. which makes you wonder - should you invest in them?

Before you get all excited and think you have found the next great IPO, think again, these guys own Sunkist, Hawaiian Punch, 7UP, A&W, and will launch Venom, yet another energy drink to add to the cluster of choices you already have.  Don't forget the new company also makes Canada Dry tonics and Schweppes ginger ale.  I know, stop everything you're doing and buy shares now.

Fellow Masters, Hansen Natural (NASDAQ:HANS) defined and made the energy drink revolution, but that rush is over, just look at all the past and current choices available (cocaine was my favorite, too bad):

So along comes an all new beverage company that has been hawking it's runner-up products at us for years.

This is Wall Street, they want to see growth, ROI, and everything else under the sun.  You want me to buy shares of the Snapple Lady? 

To tackle Coke (KO) and Pepsi (PEP) just can't happen, just look at the run Jones Soda (JSDA) has had.  If the Street starts talking up Dr Pepper Snapple Lady like its the next Coke or Pepsi and then they don't hit their numbers for the quarter or guidance, take a guess what will happen? 

Let's check back in a month and see how many shares of  Dr Pepper Snapple Lady (DPS) are short, then we'll talk.

Disclaimer: The Author has no positions in the securities mentioned in this publication.