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Bulls are gloating following Green Mountain Coffee's (GMCR +20.6%) strong FQ1 (I, II) and...

Bulls are gloating following Green Mountain Coffee's (GMCR +20.6%) strong FQ1 (I, II) and soothing FY12 guidance. KeyBanc, a stalwart defender, notes Green Mountain's 4.2M Keurig shipments blew past its 3M forecast, and that free cash flow was positive in spite of rising spending. During its earnings call, Green Mountain mentioned Keurig-based brewers accounted for 37.5% of all U.S. coffeemaker sales in FQ1 (per NPD).
Comments (4)
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Don't the patents for the K-Cups expire this year?
    2 Feb 2012, 12:19 PM Reply Like
  • wyostocks
    , contributor
    Comments (8716) | Send Message
     
    Yes. If not for that the multiple wouldn't be 50 it would be 75.
    Reminds me of pets.com.
    2 Feb 2012, 12:28 PM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Since K-Cups are a large portion of their profit margin, Not sure I would buy into it just now, could be setting up for a big drop later this year.
    2 Feb 2012, 01:05 PM Reply Like
  • wyostocks
    , contributor
    Comments (8716) | Send Message
     
    Agree. Don't know whats nuttier, this or netflix.
    2 Feb 2012, 01:25 PM Reply Like
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