Slow Trader

Tag: Green Mountain Coffee Roasters Inc

  • Is it a good time to buy coffee?

    For the longer term traders, here’s a consideration.

    Keurig Green Mountain Inc. Formerly Green Mountain Coffee Roasters Inc. a specialty coffee and coffeemaker company founded in 1981 and headquartered in the U.S.

    The coffee maker has had a share price drop since late 2014. Analysts say it is due to the popularity of the coffee maker’s product. However, the price drop coincides well with the drop in coffee value, as shown on the COT report.

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    Green Mountain has good fundamentals. I believe that the share price drop is associated more closely with the commodity price of coffee rather than anything that Green Mountain have, or have not, done.

    The question is “is this a good time to buy”? It could be absolutely perfect as a buy point, or it could be too early.

    Trying to find the bottom of a market is not fun. Mostly we get stopped out trying to do this. The recent trend is most certainly against us and, although the COT shows a possible bottom to the market, the COT could turn higher and force the price of coffee (and therefore possibly Green Mountain share price) even lower – as it did in 2013.

    The answer: let us wait until the price trends upwards, and with the COT on coffee showing the same, we could have a long-term winner.

    I will blog when I get a buy signal for Green Mountain (GMCR).

  • My S&P 500 top buy tips 2015

    Again, from Nick’s spreadsheet, I have selected a few S&P 500 shares to buy as part of your go-get-em portion of your money.

    Google Inc (either GOOG or GOOGL), Priceline Group Inc, Green Mountain Coffee Roasters Inc, Michael Kors Holdings Ltd, Qualcomm Incorporated.

    These are based on the company showing above 80% consistency of growth, a present value that Nick has as less than 55% of potential, and no, or insignificant, debt. P/E has to be representative of the companies sector and certainly not above 40. There are lots of other criteria, but these cover the main ones.

    They are also based on a medium term buy signal about to show. Probably within a couple of weeks.

    Be aware, however, that you need to understand the company too. Blackberry, for example, would have qualified for a few years in the above category – but at that point Blackberry also had no future market.

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