Green Mountain Coffee Roasters
(NASDAQ:GMCR) engages in the specialty coffee and coffee-maker businesses in the United States and Canada. It sources, produces, and sells approximately 225 varieties of coffee, cocoa, teas, and other beverages in K-Cup and Vue single serve packs, and coffee in traditional packaging, including whole bean and ground coffee selections in bags, and ground coffee in fractional packs.
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What I Am Looking At:
Outperforming on a year-to-date basis, up more than 11% and up 170% since the July 2012 bottom.
Underperforming on a year-over-year basis, down 33%.
$60 round number level appears to be next target over intermediate to longer-term.
Recent bounce from the 40-day moving average, 0% year-to-date level, and the 50 level on relative strength index (RSI) could be start of a new leg up.
Heavy March call open interest resides at the 45-strike, possible delta-hedge could create a tailwind for shares in the short-term.
March implied volatility is at cheapest level during past 52 weeks.
Short interest peaked and falling since last November but still represents a lofty 21% of the float, could be in short-covering mode.
Five out of nine analysts rate the shares a “hold” or worse, potential for upgrades.
Short-term target of $51.33, triple the 2012 low, longer-term target $60.
This article by Tony Venosa, CMT, was originally published on Schaeffer's Investment Research.
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