Dr. Pepper is one of the strongest brands out there. KO or PEP could gain a serious competitive advantage by acquiring DPS. Especially now that's separate from Cadbury because it would be cheaper to acquire.
Or private equity moves in, takes it private, increases profits and sells. It just seems like there's a lot of brand equity to be had here that KO or PEP could afford.
This company is a great cash generator but currently it still has quite a lot of debt on the books from the spinoff.
Secondly, the compnay only has North American distribution rights so international brands like Coke and Pepsi wouldn't be effective aquirers.
It is possible the private equity takes it but not for awhile if it happens. There is too much debt and credit markets are going to be tight for several more years. I bought some just above 12 and if it doubles here soon as this rally fades i'd sell and buyback lower. We're in a secular bear market since 2000 and there is no reason to believe in any big new bull move from here. In fact although many stocks have seen their lows for this cycle they probably will retest- there is no rush. The second year in a presidential term is historically a terrible year for the market. Everyone is getting out front of this and they're nuts..there are many more debt problems ahead of us.