(GuruFocus, August 31, 2009) Investment Guru Steve Mandel initiated a new position in Green Mountain Coffee Roasters Inc.(GMCR, Financial). GuruFocus data shows that on August 19, 2009, Steve Mandel bought 36,445 shares of GMCR at the price of $55.61 per share.
Green Mountain Coffee is one of the leading specialty coffee companies in the markets. The economic recession has been bad for companies like Starbuck Coffee, but has been good for Green Mountain. Green Mountain Coffee Roasters Inc. has a market cap of $2.26 billion; its shares were traded at around $60.19 with a P/E ratio of 61 and P/S ratio of 4.5. Green Mountain Coffee Roasters Inc. had an annual average earning growth of 29.9% over the past 10 years.
The company’s business has been on fire lately. On July 29, 2009, GMCR announced its fiscal 2009 third quarter results for the thirteen weeks ended June 27, 2009. Net sales for the third quarter of fiscal 2009 totaled $190.5 million as compared to $118.1 million reported in the third quarter of fiscal 2008, representing an increase of 61% over the same quarter last year. Net income for the third quarter of fiscal 2009 increased 123% to $14.1 million or $0.36 per diluted share, from $6.3 million or $0.16 per diluted share in the third quarter of fiscal 2008.
The questions is, can the high growth continue and can the high growth rates justifies the high valuation of the stock. The latest purchase by Steve Mandel shows he certainly thinks so.
But Steve Mandel is not joined by the company’s executives. President and C.E.O. Lawrence J. Blanford sold 12,132 shares of GMCR stock on 06/04/2009 at the average price of $60.04; He also sold 12,131 more shares of GMCR stock on 05/27/2009 at the average price of $57.07. Director Hinda Miller sold 4,500 shares of GMCR stock on 05/06/2009 at the average price of $50.3; Chairman of the Board, 10% Owner Robert P Stiller sold 300,000 shares of GMCR stock on 05/04/2009 at the average price of $48.81.
GuruFocus keeps track of the investment moves of Investment Gurus such as Warren Buffett and Steve Mandel. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.Â
Green Mountain Coffee is one of the leading specialty coffee companies in the markets. The economic recession has been bad for companies like Starbuck Coffee, but has been good for Green Mountain. Green Mountain Coffee Roasters Inc. has a market cap of $2.26 billion; its shares were traded at around $60.19 with a P/E ratio of 61 and P/S ratio of 4.5. Green Mountain Coffee Roasters Inc. had an annual average earning growth of 29.9% over the past 10 years.
The company’s business has been on fire lately. On July 29, 2009, GMCR announced its fiscal 2009 third quarter results for the thirteen weeks ended June 27, 2009. Net sales for the third quarter of fiscal 2009 totaled $190.5 million as compared to $118.1 million reported in the third quarter of fiscal 2008, representing an increase of 61% over the same quarter last year. Net income for the third quarter of fiscal 2009 increased 123% to $14.1 million or $0.36 per diluted share, from $6.3 million or $0.16 per diluted share in the third quarter of fiscal 2008.
The questions is, can the high growth continue and can the high growth rates justifies the high valuation of the stock. The latest purchase by Steve Mandel shows he certainly thinks so.
But Steve Mandel is not joined by the company’s executives. President and C.E.O. Lawrence J. Blanford sold 12,132 shares of GMCR stock on 06/04/2009 at the average price of $60.04; He also sold 12,131 more shares of GMCR stock on 05/27/2009 at the average price of $57.07. Director Hinda Miller sold 4,500 shares of GMCR stock on 05/06/2009 at the average price of $50.3; Chairman of the Board, 10% Owner Robert P Stiller sold 300,000 shares of GMCR stock on 05/04/2009 at the average price of $48.81.
GuruFocus keeps track of the investment moves of Investment Gurus such as Warren Buffett and Steve Mandel. More information is available to Premium Member. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.Â
