Today’s chart comes courtesy from a number of reader requests for Green Mountain Coffee Roasters (GMCR) which engages in the specialty coffee and coffeemaker businesses in the United States and Canada. It sources, produces, and sells approximately 225 varieties of coffee, cocoa, teas, and other beverages in K-Cup and Vue single serve packs; and coffee in traditional packaging, including whole bean and ground coffee selections in bags, and ground coffee in fractional packs.
Ticker: Green Mountain Coffee Roasters (GMCR)
Strategy: Long Trade
What I Am Looking At:
- Outperforming on a year-to-date basis, up more than 11 percent and up 170 percent since the July 2012 bottom
- Underperforming on a year-over-year basis, down 33 percent
- $60 round number level appears to be next target over intermediate to longer-term
- Recent bounce from the 40-day moving average, 0 percent year-to-date level, and the 50 level on relative strength index (RSI) could be start of a new leg up
- Heavy March call open interest resides at the 45-strike, possible delta-hedge could create a tailwind for shares in the short-term
- March implied volatility is at cheapest level during past 52 weeks
- Short interest peaked and falling since last November but still represents a lofty 21 percent of the float, could be in short-covering mode
- 5 out of 9 analysts rate the shares a “hold” or worse, potential for upgrades
Targets: Short-term target of $51.33, triple the 2012 low, longer-term target $60.