ugadawg_98 Posted January 29, 2018 Share Posted January 29, 2018 DPS is being bought by Keurig/Green Mountain. I was buying this morning in the $118s. You get $103.75 plus stub of new business. Cost basis on stub around $15. Stub to pay .60 per annum dividend or 4% yield Thoughts? Link to comment Share on other sites More sharing options...
writser Posted January 29, 2018 Share Posted January 29, 2018 My thoughts are that you should probably do a little bit more work valuing the stub. What does the pro-forma company look like? Link to comment Share on other sites More sharing options...
hillfronter83 Posted January 29, 2018 Share Posted January 29, 2018 My thoughts are that you should probably do a little bit more work valuing the stub. What does the pro-forma company look like? I took a quick look and here is my quick dirty napkin analysis: the merged company will have about $11b sales. Using COKE's current P/Sales of about 0.48. I got about $3.8/share for the stub so current price is too expensive for me. Link to comment Share on other sites More sharing options...
ugadawg_98 Posted January 29, 2018 Author Share Posted January 29, 2018 There's a better discussion on this on the Investment ideas forum, so I'm posting there now. Link to comment Share on other sites More sharing options...
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