Green Mountain has been brewing, and on Tuesday, you could really smell the coffee.
OK, I know — step away from the puns.
Remember this post, from a few days ago?
Yeah, I joked around that I was tired of this stock. It’s a name I had invested in last year, soon after the new bull market was confirmed. I made money in Green Mountain, and sold it back in the fall, when the market was getting a little too bearish again.
But I never stopped watching it. As you’ll see, it’s been a stock that has continually been on the radar here. Tuesday, one day after the Nasdaq confirmed a new uptrend, Green Mountain broke out of its seven-week consolidation, rallying to an all-time high of 89.75 in above-average volume. The move came after Peet’s extended its offer to acquire Diedrich’s Coffee.
Green Mountain is currently in buy range. The market’s in a confirmed uptrend. What’s not to like?
Wall Street sees earnings growth coming in at 79% this year and 40% in 2011. This is not a company that’s grown through cost cutting, either. Sales have increased at a rate of 43% or higher in each of the past eight quarters.
When the company most recently reported earnings, it said it was planning to focus on growing sales in the Western U.S. It’s great that they see more room to grow. I live in California, and when I walked into Bed, Bath and Beyond around the holidays, one of the first things I saw was a big display for Green Mountain’s Keurig K-Cup single brew coffee system. So that tells you: Green Mountain is already pushing its products hard on the West Coast – and they say there’s more to come!
We are adding shares of Green Mountain to our portfolio.
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