This Week's 5 Smartest Stock Moves
If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.
1. Killer Vue
Green Mountain Coffee Roasters (NAS: GMCR) may take its lumps after its Keurig K-Cup patents run out later this year, but the single-serve coffee leader is rolling out new intellectual property.
Green Mountain unveiled Keurig Vue on Wednesday. When the first Vue brewer hits the market in the coming weeks, java lovers will be able to make richer brews than what is presently possible on its flagship K-Cup-based appliances.
Vue raises the stakes through adjustable water pressure, timing, and airflow settings to the process. Perhaps more importantly, the Vue introduces a new proprietary platform for refills. As the K-Cup patents expire, the Vue packs take over.
Green Mountain knows that K-Cup will continue to be the country's single-serve consumption platform of choice for the next few years. Patents or not, Green Mountain already owns many of the more popular K-Cup brands. However, now it has a new system that it can begin to market to java buffs that want a richer experience -- and the retail distribution connections to make it matter.
2. The big picture
IMAX (NYS: IMAX) keeps growing. The provider of screen projector systems that deliver supersized cinematic experiences announced more IMAX installations in China and posted encouraging mid-quarter box office results.
A deal to open four more IMAX systems in China pushes the number of theaters already installed or set to be installed in the world's most populous nation at 217. That's a sizable chunk for a company that only had 583 screens on the market at the end of September.
Exhibitors have been having a tough time lately, but things change when you go IMAX. Screenings through IMAX systems have registered $55 million in ticket sales at the halfway point of the March quarter. IMAX ticket sales were only at $38 million at this point last year.
3. Pay to save
Groupon (NAS: GRPN) is giving its most devoted deal seekers a good reason to get even cozier with the flash sale website.
The daily deals leader is rolling out Groupon VIP, a premium program where bargain hunters pay $29.99 a year for special perks.
Pay more to save money?
It works for warehouse clubs and online retailer loyalty program, so why not Groupon? Members of the new VIP program enjoy early access to deals, the ability to buy expired and sold-out offerings, and trade in unused and even expired deals for Groupon Bucks.
Groupon VIP is currently only available by invitation but will likely soon roll out to everyone.
It's a smarter move than you think. Once someone makes a financial commitment -- think Amazon Prime or that BJ's Wholesale Club card in your wallet -- there is a real incentive to spend more money. It's about engagement, and Groupon is really the only daily deals site with the audience girth to pull this off.
4. Sirius black
Remember when most investors were dismissing Sirius XM Radio (NAS: SIRI) as bankruptcy bait three years ago? Well, the satellite radio provider has gone on to be one of the market's biggest winners since bottoming out in February 2009.
Things have gone so well for Sirius XM that -- despite the highly dilutive cash infusion to save the company and the massive capital appreciation over the past three years -- an analyst is raising his price target on shares on a valuation argument.
Citigroup analyst Jason Bazinet is raising his target on the shares from $2.20 to $2.50, arguing that the stock trades at a reasonable free cash flow multiple if we go out a few years.
He's also seeing right through CEO Mel Karmazin's low-balling ways. Sirius XM's chieftain is publicly targeting 1.3 million net additions this year, but Bazinet believes the satellite radio giant will pad its rolls by 1.5 million total subscribers in 2012.
The website chat support specialist that had the misfortune of going public just as the market was peaking in the springtime of 2000 has redeemed itself in recent years by signing up Fortune 500 companies to use its platform to provide immediate support to website visitors.
Revenue and adjusted earnings climbed 22% and 26%, respectively, in its latest quarter. LivePerson is alive!
At the time this article was published Motley Fool newsletter services have recommended buying shares of IMAX, Green Mountain Coffee Roasters, and LivePerson. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Green Mountain. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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