+ Watch GMCR
on My Watchlist
The Company together with its subsidiaries is engaged in the specialty coffee industry.
Coke just bought in. no debt
Their coffee makers have revolutionized coffee making for working people. The little coffee packets will be a big recurring item. I have one - I love it!
Coca Cola is buying a 10% stake of the company in newly issued shares (dilution) for $75, so clearly we should be excited to buy in at $120.And being able to make a coke at home, does it get any better? I've always liked soda, but I hate the inconvenience of going to the fridge and opening up a can. If I could just go to the pantry and pop a k-cup into a machine on my counter instead, my soda consumption would probably increase ten-fold. Of course I would be willing to pay $200 for a machine that saves me from the current headaches of taking a can out of the fridge. This new machine will also be great for filling in that unsightly extra counter space I was just complaining about the other day.Seriously, this is one of those cases where I think Mr. Market is a little too exuberant. While I think the Coke deal is good for both companies, I haven't seen anything over the last week that would make me think this company is now worth 50% more. In another quarter or two I suspect reality will set in and people will realize there is nothing here that justifies GMCR's current valuation (in my opinion - clearly others disagree).Remember this Keurig Cold machine hasn't even been made yet, and Americans are drinking less soda for health reasons, not because they can't make it in their own home. In my opinion, part of SodaStream's value prop (to people that actually bought it versus those that just received it as a Christmas gift) is the ability to make a "healthier" soda than Coke or Pepsi. The drinks you can make with SodaStream have significantly less sugar than standard soft drinks. At least that was my understanding when I watched the demonstration in the department store, but I'm not a huge soda drinker.
Yes, the Coke deal is big for this company. But the product won't even hit shelves until 2015. I think the valuation is overblown at this point.
ITS DEAL WITH COKE IS A GAME CHANGER. I EXPECT REVENUE TO GO THROUGH THE ROOF IN THE YEARS AHEAD, MOST ANALYSTS HAVE NOT REALIZED HOW BIG A DEAL THIS IS ,IT IS HUGE FOR GREEN MOUNTAIN.
Coffee is a given for a lot of people, but I think it will come back to a price of 85.00.
This is a real-life holding of mine through my investment club.Sales grew 14% last year, and EPS grew 39%. The pre-tax profit margin has been growing for the past 3 years, and the earned-on-equity has been growing for the past 2 years. The debt-to-equity has been falling for 3 years, and ended 2013 at just 9%, which is pretty good. The current P/E is above its historic averages, but below the highs of 4 of the last 5 years, so a little stretched in valuation, but not horribly so. The huge jump on 2/6/2014 stretched the valuation, so we will have to see if the exuberance is warranted over the signing of a cooperation agreement with Coke. The PEG ratio is a low 0.66. The company does not pay a dividend.Even with the large jump in the stock price, I am still hoping for good things from GMCR. I think that the stock could potentially return me 22% on an annual compound basis over the next several years. That would mean I could double my investment in less than 4 years. Here's hoping the growth expectations play out for me.
- Coca-Cola announces 10% stake (2/6/14) and anncounces new "cold" models coming in FY15.- 5-year PEG = 1.17- YOY Revenue Growth = 10.6%- EBITDA aproaching $1B- Cash = $260.09M to Debt = $256.98M
Just taking a downthumb while the 37 Million shorts get roasted. I also don't think the new "coke machines" will make a difference in GMCR's bottom line for serveral quarters, maybe a year as it implies it needs designed, built, and then supplies have to be pipelined. Could be a long term win, but I expect some fizzle when the shorts regroup.Ouch...."Einhorn told attendees of his annual investor event on Jan. 21 at the American Museum of Natural History in Manhattan that Greenlight still had a short position in the coffee company." He did a 110 slide presentation the year before on why GMCR was overpriced.(Side note, interesting that upthumbs got in this morning at $110, when the highest printed was a blip up to $109.90, but my $108 downthumb didn't go in. Usually CAPS is consistant on it's inconsistancy, what time it wakes up in the morning, and the 20 minute gaps). I'll take my entry, as West Coasters and Hawaii shorts sleep in, Early to bed and early to rise Einhor.
The announcement of the partnership with Coca-Cola to produce a home soda system is potentially huge and is likely to undercut Sodastream's market share. The vast reach and marketing expertise of Coke will be hard for established home soda machine companies to match.
Coke just bought a 10% position.
The overzealousness of the Coke deal has driven the stock to a ridiculous after-hours price which will only come down when sanity returns. It will rise slightly until then. This is short term short, like a few days.
Coca Cola deal
I feel that 80% of households will own Keurig coffee maker within 5 years and with this coffee maker they will try the variety of Green mountain coffees. The Mr.Coffees, Braun, Black & Decker coffee makers will fall to the wayside.
drink coffee yall
Keurig is dominant in home and in office machine. Great alternative to Starbucks and people all over the world love coffee.
You're not gonna see the next generation of coffee drinkers buying old fashioned coffee pots anytime soon
Continued growth in K-Cups will be a growth opportunity
The signs are everywhere. Starbucks has gotten rid of their machine, and they are selling K-cups. Target seems to practically only be selling Kerigs. They don't even have Nescafe machine in stock (only online). All the numbers don't mean much when it is clear what is happening. Not a monopoly, but can you say dominance!
Insider buying. It's rebound time.
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