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Varchild2008 (85.06)

This stock got slammed for no reason at all (CBOU)



January 19, 2011 – Comments (5) | RELATED TICKERS: CBOU.DL

(CBOU)  down 45 cents?  Back to a 9 handle?

Either their breakfast sandwiches are that bad.... or investors are that stupid.

I am willing to bet on the latter and say CBOU has now enterred strong buy territory if someone wanted my ignorant opinion.   Cause CBOU unlike SBUX has Keurig K-CUPs.

And I bought a box of K-CUPs last quarter...

DISCLOSURE:  I owned CBOU shares and sold them for a nice profit in 2010.  I currently own ZERO shares of CBOU and don't have plans to jump back in yet.

5 Comments – Post Your Own

#1) On January 19, 2011 at 5:20 PM, EnigmaDude (51.43) wrote:

Pretty much all smallcaps got "slammed" today.  This one did not fare too badly (only down 4% at the close) but still seems a bit overpriced to me.

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#2) On January 19, 2011 at 5:36 PM, PainterPoker (24.82) wrote:

Unfortunately, Caribou Coffee makes pretty bad coffee.

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#3) On January 19, 2011 at 6:21 PM, SultanOfSwing (32.58) wrote:

Isn't 45 cents the amount they refund you for bringing your own cup?  So just bring in your cup and ask them to fill it to get your 45 cents back!  ;)

Seriously, I wish they had a store near my work for this reason.  But they got crowded out by 3 SBUX within one mile of my office.

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#4) On January 19, 2011 at 7:39 PM, amassafortune (29.05) wrote:

I'm guessing a margin squeeze based on the coffee commodity price is what is being signaled in CBOU.

10/5/2010 $218 - 1/13/2011 $283 =  29.8% commodity coffee increase in less than four months.

1/20/2009 $142 - 1/13/2011 $283 =  99.3% increase in two years.

This is why supermarkets are showing a poor earnings trend. With cotton, gasoline, etc. way up, and with heavy post-holiday layoffs that were largely ignored last week, I expect all but high-end retailers to show similar weakness, too. 

The weak dollar and pumped stock prices were supposed to get core, animal-spirited growth to kick in before the consequences of these policy took hold. Oops, we're seeing consequences first.

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#5) On January 20, 2011 at 8:12 PM, Varchild2008 (85.06) wrote:

Rate Hikes and other mechanisms could help push commodities lower. 

But.....heh....all the accounting tricks in the book can't lower the supply/demand outlook that is 90%+ what determines commodity costs.

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