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Dr Pepper Snapple Group, Inc. Message Board

  • emeryrun emeryrun Sep 9, 2010 1:43 PM Flag

    What's up?

    Anybody know why the big price drop today? Didn't see any downgrades?

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    • Sales warning. Just listened to the Barclays presentation and the CFO clearly warned that revs are below expectations in the 2nd half. Momentum money leaving.
      Mgt's. focus on executing organic growth strategy and growing share value makes this buying opportunity for longer term investors. Added shs. today.

    • This is what I figured. Somebody is trying to drive the price down so they can get your shares. News will become positive soon and the stock will shoot up. From my personnel calculation, this stock is discount at 50-60% to its fair value with 2.6% div. Balance sheet is good enough to sustain a sudden shock. Cap is right size for the growth. The products are liked by ordinary people. Use your common sense and it is hard to find in this kind of economy. It is hard to find.

    • that sounds like one of corporates press releases. that plants nowhere near pre strike levels, these people are lying to you. that plant doesnt produce the highest sales volume but does generate significant profit. Nelson Peltz seems to think theirs some importance to this plant. oh by the way there will be a better offer and those union scum will be back to work before the end of the month. clueless and rich!

    • I agree: too much volume to be attributed to those few remarks by Larry. Something else triggered it -- maybe electronic trading with stop losses taking out a lot of shares? Who knows. A good buy opportunity, I think. All shareholders should listen to the whole presentation and conference call from this week. It was a very, very strong growth story. NOTHING in it justified any kind of loss like we saw today. Nothing.

    • Wow. Are you clueless: the Mott's plant represents only about 1% of sales. The strike is having zero to no impact -- the non-union workers brought in are almost back up to full capacity, and not complaining, but working. So the plant is processing, producing product, and distributing product. The striking workers need to wake up: they are working in a plant that is the least productive of all DPS plants. DPS made a VERY GENEROUS OFFER (including signing bonuses, keeping salary the same, so no cut, etc etc) and they turned it down -- talk about clueless. And talk about arrogant- they often quote that DPS made $555 million last year: but that was not the Williamson plant. That was the hard work of OTHER DPS workers. The Williamson plant is the least efficient plant in the whole DPS stable. The company is doing the right thing. The workers are showing their true colors. And could easily find themselves working for minimum wage at McDonald's or Wendy's if they get too greedy.

    • CNBC seems to be attributing the decline due to the comments by the CEO on Wednesday. Still don't see why that would cause a 6% drop. He wasn't saying anything that should have shocked anyone. Hate to try and catch a falling knife but had to nibble a little at the end of the day. Should be interesting to see where this goes in the short term.

    • ummm.... it's right there in the Yahoo! news, don't you think? Released after hours yesterday. Seems likely to create an oversold price this afternoon...

      BOSTON (AP) -- The CEO of Dr Pepper Snapple Group Inc. thought shopper spending would have recovered more so far this year, though he is seeing improvements.

      Larry Young told investors at a conference Wednesday that last year at this time he thought spending would have improved more than it has by now. Retailers, including convenience stores, that carry the company's drinks including its namesake soft drink, Crush and Canada Dry, say more people are coming into stores but they're still looking to spend less on what they buy.

      "The consumer is not where i had them planned to be right now," he told investors at the Barclays Capital Back to School conference in Boston.

      The convenience store sector -- important for companies like Dr Pepper Snapple because products sell at higher prices there -- is really hurting because it depends on blue-collar workers, who are grappling with high unemployment and weak housing numbers.

      "When we see those improve, you see a definite uptick there," he said.

      The company's brands are doing well though this year, he said. Dr Pepper continues to be sold in more outlets, including McDonald's.

      The company's teas are also doing well and premium-priced Snapple is recovering and should continue to grow, he said.

      But deep discounting this summer on soft drinks by retailers such as Wal-Mart hurt business and undid the industry's growth and price increases in the past few years. He said it also shifted shoppers back to cans -- which cost less than other forms of soft drinks -- and lowered sales.

      "Now we've got to get back in there and get that mix right," Young said. "We're getting two liter back in the ads, half liter, six pack half liters back in the ads. Other packages besides just the can."

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