Stock Up on Dr Pepper

What follows is a bullish appraisal of Dr Pepper Snapple Group (DPS). Before we get started, here are a couple of disclosures.

First, I love spin-offs and have several in my portfolio. These situations have been very profitable in the past thanks to an information void and an excess of natural sellers. Research is often rewarded because so few investors want to do the work. And many investors sell because they don't want to hold "a few lousy shares" of XYZ company. In short, spin-offs are ripe targets for value investors.