Green Mountain Coffee shares due for a pullback
During the biggest economic downturn and stock market collapse since the Great Depression, Green Mountain Coffee Roasters (Nasdaq: GMCR) has by all accounts been having its best year yet.
Green Mountain is firing on all cylinders, and in the most recent quarter reported a 61 percent increase in revenues and 123 percent increase in profits. So impressive is the growth that "Fortune Magazine" recently named the company 11th on its annual list of the fastest-growing companies.
Investors in the Waterbury-based coffee company have seen the stock jump 136 percent year-to-date, and a stunning 1,224 percent over the past five years, from $4.53 to $60. The rise in the company's stock follows impressive financial performance coupled with new relationships with Mr. Coffee and Walmart, and an acquisition of Tully's Coffee on the West Coast.
The company is an outstanding example of a small-cap stock that was unknown for years, and has recently emerged as a well-known, high-growth success story. Both institutional and individual investors have been buying up shares, as the media spreads the gospel of coffee from the Green Mountain State.
However, the company's past success and the dramatic rise in share price shouldn't be reason to buy shares of Green Mountain today...
Green Mountain is firing on all cylinders, and in the most recent quarter reported a 61 percent increase in revenues and 123 percent increase in profits. So impressive is the growth that "Fortune Magazine" recently named the company 11th on its annual list of the fastest-growing companies.
Investors in the Waterbury-based coffee company have seen the stock jump 136 percent year-to-date, and a stunning 1,224 percent over the past five years, from $4.53 to $60. The rise in the company's stock follows impressive financial performance coupled with new relationships with Mr. Coffee and Walmart, and an acquisition of Tully's Coffee on the West Coast.
The company is an outstanding example of a small-cap stock that was unknown for years, and has recently emerged as a well-known, high-growth success story. Both institutional and individual investors have been buying up shares, as the media spreads the gospel of coffee from the Green Mountain State.
However, the company's past success and the dramatic rise in share price shouldn't be reason to buy shares of Green Mountain today...
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