Are Investors About to Get Roasted? By Chris Laudani About this article: Shares of Green Mountain Coffee Roasters , purveyors of premium gourmet coffee and coffeemakers, have been percolating. The company has a better five-year return than Starbucks , Apple or Google . While investors have had a lot of reasons to celebrate, this type of stock gives me the jitters. GMCR has all the markings of a dangerous momentum stock: Easy-to-understand product (sells coffee and coffee machines) Simple business model (razor/razor blades) Impressive past earnings and revenue growth Impressive past five-year return National rollout story (East Coast going West) Huge short interest So what does it do? Green Mountain has been on a tear since it bought Keurig in 2006. Now the second-largest manufacturer in Vermont, the company operates two business units: the Specialty Coffee Unit and the Keurig System Unit. The specialty coffee business sells over 200 different flavors of ground coffee and whole-bean coffee. The Keurig business unit makes and sells a variety... To read the rest of this article and sign up for a FREE trial click here...

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