Today Starbucks announced that they will be producing a high-pressure, single-cup espresso brewer. This announcement has fueled speculation that Starbucks will be breaking ties with Green Mountain and Keurig. This rumor resulted in the chart below, which in my opinion screams “Buy Me!”.
Buy me! Buy Me!
I can’t find anything that says Starbucks will be breaking ties with GMCR. Starbucks is developing a new line of single cup high-pressure espresso machines. This is a different machine than those that are currently manufactured by Green Mountain and Keurig who specialize in low-pressure coffee machines. So this is totally a rumor fed sell-off that has caused the stock price to pull back and cover the gap that resulted when GCMR crushed earnings estimates last quarter. Technically it’s called a “pull back to a support price”. But it’s a rumor sell…
That gap up last quarter was also helped along by the shorts who were still holding positions from Einhorn’s recommendation. The earnings news caused them to sell to quickly which drove the price up – the short squeeze. Since most of those shorts have already covered they did not provide any price support for this recent gap down which is partially why it was so dramatic..
So what does all this mean? It means that GMCR is still a strong buy. With it’s impressive line of coffees and the recent release of a fancy new brewer I don’t see much slow down. I look for the stock to close in the $53-$54 range today. Possibly lower, as the rumor hounds wait for a reason to buy. Then over the course of the next couple weeks I expect the price to slowly climb and reclaim the gap.
Earnings are released on 5/3. Analysts do not expect them to be anything like they were last quarter. So if you’re holding a long position at that time check your buy price and set you stops accordingly. There’s a chance the the stock could gap below your buy-in price which again would be a great time to load back up.
Disclaimer: I currently to not own any positions in GMCR or Starbucks.
Could we be seeing this when Apple introduces it’s latest iPad today?
My guess is, no. The amount of time that Apple would have to put into this technology to get it all Apple-y (i.e. awesome) would be immense. This video was posted by the company in Nov/Dev of 2011. And given Apple’s history of workflowing/designing/testing everything to death I doubt that is enough time to create a significant enough integration.
What do I think we’ll see today? An iPad HD with an amazing display, both Verizon and AT&T LTE versions, more storage, more RAM and Siri. All of that doesn’t add up to a whole number product release, at least in my mind. So the new iPad is either going to be akin to an ‘S’ release (iPhone 4S) or we’re going to something really cool like a reduced bezel size, a different form in some way, or perhaps some snazzy electrostatic touch display…er…thing.
I also think we’ll also be seeing a new 1080p capable Apple TV3, the announcement of Apple’s new iTunes 1080p streaming service (the LTE iPad would help streaming these movies down via 4G) and possibly a glimpse at the long rumored Apple Television (I already want one) and Apple’s soon to be streaming TV service.
Seems like a lot. My credit card is already singing in wallet. Damn you Apple!
Sucky logo...
A good idea is a good idea. And I think that this is a good idea.
Yippy is a family friendly search engine. What does that mean? It means you can allow your kids to search for things on the web and not worry (too much) that they’ll see links/images/videos that you don’t want them to see. Which is awesome.
I’ve tried it out a little bit and I can tell you that the usual things that you don’t want your kids to see are not visible on Yippy. I won’t run through all of the things that I tried, but I was pretty creative. If you search for something that Yippy has deemed unfit for family viewing then you’re linked to a page containing the image below.
Again, note the ugly logo. I sincerely hope that a graphic designer wasn’t paid for that crap.
Another interesting piece of info is that Yippy is a publicly traded company (YIPI) and is about to launch a multi-million dollar advertising campaign.
Last I checked the stock was trading at $.24 a share and was up 4.35% day over day. In July 2011 the stock traded at a high of $1.45 and then spent significant time between $.50 and $1.00. This could indicate that investors were long while the company waited for a fresh infusion in venture capital. That infusion was a long time coming. But Yippy just received 2 million dollars of fresh green cash and they are planning to use that money, starting April 1st, to launch an advertising campaign.
This could be the perfect time to get in on this one. $1000 investment could payoff huge here. Play the rumor bump and it’s probably good for a few nice swing profits. If it takes off, you could end up very happy. I’m not saying that the stock is going rocket into the stratosphere like google (GOOG). But it’s definitely worth keeping an eye on.
If only they’d get rid of that horrible logo.
As with all investements, do your research. And if you lose money, it’s not my fault : ) I’ll tell you that you should have invested in AAPL!
