Green Mountain Coffee Roasters Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Green Mountain Coffee Roasters (NAS: GMCR) rallied for a second day as analysts offered strong support of the company's growth strategy. The stock closed up about 9% after jumping 11% in intraday trading and 13% yesterday.
So what: Both Canaccord Genuity and Janney Capital Markets analysts issued favorable remarks. Canaccord, in particular, referred to sell-through data from NPD cited in the Q4 conference call. Keurig unit sales tracked by the researcher increased 56% in the fourth quarter.
Now what: The majority of Fools tracking the stock in our Motley Fool CAPS database remain sour on Green Mountain's prospects, but you won't find me among them. I've been long Green Mountain shares in CAPS since 2006, and having tasted the new Starbucks (NAS: SBUX) K-Cup blends, I'm more convinced than ever that this is a durable consumer franchise. Do you agree? Would you buy shares of Green Mountain Coffee Roasters at current prices? Please weigh in using the comments box below.
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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns shares of Starbucks.Motley Fool newsletter serviceshave recommended buying shares of Starbucks and Green Mountain Coffee Roasters and creating a lurking gator position in Green Mountain Coffee Roasters. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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