Peet's Coffee & Tea, Inc. (PEET)

I don't get these guys. They just closed all their stores in the Denver metro area, and now they claim they are growing and opening new stores! I realize that coffee is all the rage right now, but here is another bubble that will burst, badly.

Branding issues, inferior pastries to Starbucks

a good chains of coffeeshops

This is a great product that can sell itself. It would be a little speculative. Though the company has no debt, it is in a low margin business with a lot of competition. It's p/e is high even given it's growth rate. The product has a real strong core following which makes it a buy.

GOOD STOCK

Alternate CAPS profile for stocks I'm thinking about purchasing in the near term.

PERFECT CHART - CUP W/HANDLE
NO DEBT
OLDEST AND HIGHEST MARGIN SPECIALTY COFFEE
PREDICTION REVENUE FLAT, EPS GROWS BECAUSE OF MOVE TO HIGHER MARGIN SUPERMARKET BAG SALES

People we start buying coffee again and Peet's is the best coffee.

The best coffee I've ever tasted. If the management and promotion is good the coffee can sell itself

Micro-observation: We've been belt tightening in my home and we have yet to be able to go longer than a week without purchasing Major D in our house. We've tried others, even purchased Starbucks in bulk from Costco (yuck). I predicted a major slowdown for Peets since they are a high end luxury product. Not so. Every location in the Bay Area is bustling and I need a twelve step program to get any length of time away from the product. A dip below 20 again and I'm adding to my real money position.

Low margins, poor return on equity. Some people do actually need coffee, but they have less expensive options than this. And for that matter, investors have cheaper (and better) options than this...
A Starbucks (SBUX) fall does not necessarily mean that the company that could become the next Starbucks is such a great buy...

If you think Starbucks is good, try Peets. Coffee is delivered to your door fresh-roasted only a few days before. Fantastic company, smart management that focuses on its core and only that, unlike the fore-mentioned company. 2nd quarter profits were quite tasty, should be a few more of those coming.

In the short term, they're adoption of free wifi in the retail stores will cause a bump in customer satisfaction and sales. In the longer term, their long-standing commitment to unpretentiously provide top-quality coffee -- drip, espresso, and beans -- will continue to set them apart from the competition. Now that Starbucks is faltering, it is time for companies like Peets to shine, shine, shine.

David to Goliath Starbucks has superior product and customer experience. Company has strong expansion plans. Look out Star-sucks.

The recession is going to hurt Peet's business in the short term, but it will come back strong after about a year.

We joined the Gevalia mail-order coffee club just to get the free coffee maker, then canceled right away. Peet's only gives you a "tumbler", and that's only if you join for a whole year.

Better coffee, friendlier staff than Starbucks. Aimed at the coffee snob who has the money to spend on fancy beans.

Peet's will do well through a recession because caffeine is an addictive drug and people (me) will find a way to pay for their fix.

It is constantly going down. They are depending on the DSD market to elevate them and they are too expensive and not known around the country.

This is one of those stocks that I keep watching and... for some reason not buying. What I like about Peet's is their customer loyalty... long lines and big crowds with stars in their eyes every time you go. What I don't like is their admission of NOT seeking fast and furious growth. However... their stock seems to keep climbing... albeit not feverishly.