Thursday, April 23, 2009

Green Mountain Coffee Roasters Brewing Up Some Strong Returns

Hat-tip to Louis Navellier for a great profile of Green Mountain Coffee Roasters (GMCR) this morning.

This company has been on my radar screen for the last three months because of the abnormally high number of times I've seen it listed as a core long holding at some top hedge funds in their latest 13-Fs.

Brett Barakett's Tremblant Capital, Julian Robertson's Tiger Consumer Management, David Rosenberg's new firm Gluskin Sheff, DE Shaw & Co., and Ken Griffin's Citadel all own stakes in the company.

The company supplies coffee to a number of other brands, including Paul Newman's line (which is how I tried the coffee for the first time a few weeks ago and was blown away). It also owns Tully's, a big chain that runs from San Francisco to Seattle. It appears to be well managed.

The stock is up 35% YTD and appears to be well run. My biggest issue with the stock is its premium roast price: 31 times forward earnings. One to watch and perhaps wait for, but certainly one to drink.

Originally published in on 4/20/2009 3:37 PM EDT

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