Friday, December 10, 2010

Buy Green Mountain Coffee Roasters (GMCR)

Reason to Buy:  

Great company accompanied by over a 10% drop in share price today.  The share price dropped because of missed earnings expectations.  Because I am a long term investor, I am not concerned with a one quarter mess-up.  For more on the price drop click here.

Business:

Green Mountain Coffee Roasters is a company that thrives off of its patents.  The major patents include the popular Keurig single cup coffee machine, and the K-Cups that are needed for the machine.
  
Growing and Profitable:

The revenue growth from this time last year is over 63% and the earnings growth from this time last year is over 31%.  Growth rates of over 15% are usually considered significant.

Profitability is another one of GMCR's strong points.  Return on equity and return on assets are over 16% and 10%, respectively.

Video:

If you are unfamiliar with the Keurig coffee machine just click on this link! 

Michael R Caligiuri owns shares of Green Mountain Coffee Roasters (GMCR)

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