Keurig Green Mountain, Inc. (NASDAQ:GMCR)

CAPS Rating: 2 out of 5

The Company together with its subsidiaries is engaged in the specialty coffee industry.


Player Avatar TMFCheesehead (80.05) Submitted: 8/10/2011 12:05:06 PM : Outperform Start Price: $99.59 GMCR Score: -61.41

Crazy Port

Member Avatar BuffettJunior1 (97.69) Submitted: 8/15/2011 11:51:41 PM
Recs: 2

This company has terrible cash flow. In only 3 years (2008 to 2010) the company's accounts receivable has increased by a staggering 312.5%. The company's revenues only increased 171.4% during that same time. The inventory is also piling up; seems like the company's product isn't as popular as most investors seem to think.

It's pretty obvious this company is using crafty accounting practices to inflate its earnings. You can only do that for so long until it catches up to you. All companies eventually get caught, trust me! Remember Enron, WorldCom and Tyco just to name a few? Well, these companies did the same thing. They tried to satisfy investors so that they would pour more money into the stock. Today most of these companies don't exist, they went bankrupt and their CEO's are behind bars.

I can guarantee you that this company will pay the price in the long run. All of the idiots who bought this stock without doing some research beforehand will lose a lot of money.

To all of those who are reading this. Don't waste your money buying this stock; rather, use that money to take an accounting class. It will pay off in the long run and it will prevent you from making stupid mistakes.

Good luck!

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