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GMCR trended higher throughout the trading day yesterday and is far off |
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Released on Wednesday, August 8, 2012, 7:15 AM ET
Pittsburgh, PA (SpeculatingStocks) - Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR) has been a wild situation, moving as high as $115.97 in Q4 last year and now trading at a lowly $23.30 a share after a $1.83 yesterday. This stock has been trying hard to rebound with several false starts over the past three months.
Each time GMCR has put together a few days of uptrend, it sunk back down to a new low. Investors are debating whether this will happen again to GMCR shares. It looks like GMCR shares have solid support at around $17.50.
The company has grown revenue from $786 million in 2009 to $1.35 billion in 2010 to $2.65 billion in 2011. GMCR is trading at a PE of around 11 and a market cap of $3.62 billion. GMCR appears undervalued on that basis; however, the company has $399 million in long-term debt on its balance sheet and cash and cash equivalents of only $149 million. This leaves little room for mistakes from the company.
GMCR has a new brewer in the works, which it hopes will replace consumers' old model. The success of this new model will have a significant say in where GMCR stock price goes.
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