Firstly, DPS has an energy drink. It is called Venom. But I think the bigger picture in my mind is that either coke or pepsi should buy DPS. Or at least take a run at it. For the dollars KO would have to spend to buy MNST, they could buy up DPS's entire flavor portfolio. And with KO already owning the International distribution of DPS, that would be a natural fit. I just think DPS will eventually get gobbled up by either KO or PEP at some point. The only question is: which one?
A take out at $60 a share would value DPS at around 18.8x 2013 earnings and about 2x Revenues. It would cost Coke approx $13 billion. Plus with all the synergies you could probably save on the expense side which would make the 18.8 multiple look cheaper. Very realistic. I would say do not speculate on a takeover but, is it really speculating when you buy DPS at 12.5x forward earnings with a 3.5+% div yield? This one is a no brainer.