Dr. Pepper Snapple Group reported a loss that was not as bad as analysts had expected and a forecast that was a bit better and and the recent spin-off stock’s share price advanced over 10% today.

The Wall Street Journal reported that investors were encouraged by the numbers in an article on the DPS 4th Quarter 2008 earnings report .

The advance came on volume that was more than double its 30 day average. The price was gap up on the day. The close at $17.86 today is an impressive rise from the low of $11.83 made on March 6, 2009. All positives.

Could this mark the beginning of the spin-off company’s advance?

It is time to look at the entry criteria in your trading plan to make your own decision of if and when to enter DPS, but this one is showing signs of life.

Of course with news above and beyond the fundamentals and/or technicals of any particular company coming out every day, keeping a tight rein on the potential downside is especially important. The advantages that spin-off stocks have displayed in the past don’t lessen the need for that . . . ever, and certainly not right now.

Tags: Add new tag, DPS, Dr. Pepper Snapple, spin-off stock