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Shares of Green Mountain Coffee Roasters (GMCR +1.8%) show extra volatility with the rumor mill...

Shares of Green Mountain Coffee Roasters (GMCR +1.8%) show extra volatility with the rumor mill churning again on interest from Nestle (NSRGY.PK) in the Keurig maker. Though the mix of a U.S-centric GMCR and global giant Nestle makes sense on some fronts, there's nothing concrete on a deal and the prospect for a bid is mainly post-Heinz M&A scuttlebutt.
Comments (6)
  • nestle can do this on their own should they choose to and if i am correct that the books at GMCR are not "clean" a 10 billion dollar like pricetag not likely.
    The Black Rabbit
    20 Feb 2013, 02:15 PM Reply Like
  • The feds have already backed off from GMCR, so further mention of "unclean" books or shady accounting are vain attempts by short-sellers to talk down the price.
    20 Feb 2013, 03:25 PM Reply Like
  • No, Nestle can not do this, single cup brewers/ k-cups,on their own. Others have tried and failed so far to make a dent in GMCR.
    20 Feb 2013, 05:18 PM Reply Like
  • Nestle COULD do it...but why waste money and time to create a new image in a sector where you can buy the best? People make no sense.
    20 Feb 2013, 09:59 PM Reply Like
  • Oh so if the Feds don't pursue an issue on accounting all must be well; I was in the industry for 20 years, lot's of 10k's don't read right and the companies don't change their stripes; these guys inflate their subscription numbers, double ship etc. and their CFO left in the midst of all the downfall didn't he? I am not a short seller but if a 250 billion dollar company wanted to get into the single cup business they could.
    GMCR has been around for 20 plus years and all of a sudden based on specious single cup dominance the market cap quadrupled in a year, not sensible. The single cup business is a sympathetic business not a stand alone business which is why for Starbucks it might be feasible. Go ahead and spread rumors that Nestle will buy them, just like the Starbucks buy-out rumors of a year ago when Starbucks was just using them to learn the single cup game (what a great management idea by GMCR to share). I think this company may not survive another few years with it's mediocre coiffee product, patent losses, poor mgmt. etc.
    21 Feb 2013, 03:11 AM Reply Like
  • good points, mystery.....but really, nobody looks several years down the road for trading companies like GMCR because anything can happen beyond a year. Like you suggested, they may get bought out by bigger boys who want to control the market. So, our focus is within a year or two at most. We'll re-calibrate every quarter whether we should change course but right now, GMCR is good to fly, no, soar. Today's market pullback didn't affect GMCR. Yes, some tired traders took some profits but they came back quickly after the dips and kept the price going up..
    21 Feb 2013, 03:33 PM Reply Like
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