Green Mountain Coffee Roasters lowered its earnings expectations for the year because of difficulties predicting consumer demand for its Keurig single-serve coffee brewers and packs, further stoking criticism about its accounting and sending its stock down 41% in after-hours trading.
By Stocks & Shares:Green Mountain Coffee Roasters (GMCR) is trading at price-to-earnings multiples below other coffee companies while its growth trajectory is among the best of its peers. For this reason it is a compelling buy opportunity. It is not as trendy as other brands or stocks, but its valuation is compelling.
With 31% of the float short, Green Mountain, despite announcing weaker than expected numbers, are spiking over 45% on news that Coca-Cola is taking a 10% stake. Albeit at a discount to the price at which GMCR closed today ($80.88 close vs $74.98 purchase price); the massive squeeze is Volkswagen-reminiscent. As the following press release explains, The Keurig Cold System is in development and thus SodaStream is getting creamed in the after-hours market (down over 10%).
Coca-Cola will purchase a 10 percent minority stake in Green Mountain Coffee Roasters, according to a press release. The stock is now going nuts — it's up 40% in after hours trading. The companies have entered into a strategic agreement relating to Green Mountain's at-home cold beverage system, Keurig Cold.
By Equities Lab:We have 7077 stocks in our database, but only one stock has an Equities Lab Fundamental Score greater than 40 (out of 50). That stock is Green Mountain Coffee Roasters Inc. (GMCR). According to Google finance;