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

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.

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

Peet's careful expansion strategy is paying off.

Low market saturation,a great product, loyal foloowing(almost cult-like on the west coast), and no debt.

How could I express my complete disgust at PEET's $26 a share take-over of Diedrich's Coffee, a dog of a company I shorted here and in real life, with my loss locked in by PEET's offer? Ahhh, yes, short PEET.

Next SBUX

As a "buy what you know" I drink enough of there coffee a month to purchase several shares. At the current valuation will probably match the return of the S&P 500. The current dip may be an entry point for the longer term.

Peet's is careful about its expansion, limiting new stores so that quality of product and service can be tightly controlled and using mail order to serve customers in non-retail areas. Peet's also maintains good traffic & turnover in stores by limiting seating and not providing wireless access, yet the stores are always bustling. Amazing coffee and service, combined with prudent expansion, make this a winner longterm.

My opinion is strongly driven by my own personal consumer observations and what I have heard

This is a very good company; one of its strengths is its focus on quality over growth rate. But that means its growth cannot support a 35 multiple, let alone the 45 multiple you get if you adjust last year's earnings for stock-based compensation.

I love finding these ones. 20% growth does not justify 50 p/e. As night follows day this one needs a correction and in the current environment it is coming soon.

GOOD STOCK

With Starbucks picking up Coffee People outlets, the competitive landscape is further reduced. Peet has pretty good financials and a good product.

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

Steady, good LTBH stock. Good value, treats its employees right, great coffee.

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.

Peet's coffee entered the market before Starbuck's, but failed to capitalize on it. They have begun to do so, and although there have been fits and starts, the leadership looks strong and committed, and the products stand out.

Great coffee. A "better" version of Starbucks. The negative: my sense is that management is not as shareholder focused (read "profit") as Starbucks, but the better mousetrap theory wins the day.

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.