| Green Mountain Coffee Roasters
Green Mountain Coffee Roasters (GMCR) is finding support at its 10-week moving average. It's had a significant run-up since its March breakout. Its chart shows how investors can benefit by interpreting secondary entry points, and by balancing the art and science of chart reading. Green Mountain, the company behind the Keurig K-Cup system, has deals in place with Mr. Coffee, and Wal-Mart (WMT). It has an outstanding history of earnings and sales growth in recent quarters. Mutual fund ownership grew in recent quarters. Funds own 32% of shares, a good show of confidence from the professional investors. Return on equity is solid, at 20%. Wall Street expects excellent earnings growth over the next two fiscal years. The Accumulation/Distribution Rating is B+, showing good buying over the past 13 weeks.
Coffee Republic set for administration
The future of Coffee Republic, the coffee shop chain, was in doubt this evening after it asked for trading in its shares to be suspended ahead of the appointment of administrators to a number of subsidiaries, including its UK offshoot. The development surprised some observers as in December the company had announced it had cleared all its debts and expected to become cash flow positive and earnings positive by the end of the current financial year for the first time in its history. At the time, it said that trading in its core UK business had stabilised, although it continued to "proceed warily" on expansion. The company was founded by brother and sister Bobby and Sahar Hashemi in 1995 but for years struggled to reach profitability amid ambitious expansion.
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