"Other companies have rushed into offer the single-serving, K-cup style packets. Even old line favorites such as Maxwell House and Folgers are in the mix these days. This is going to hit margins as the company loses pricing power for its coffee products. I am starting to see other one-cup brewers on the market, and the company eventually will have real competition for the machines as well."
Does this guy do any homework? Has he looked at patents and license fees and one time settlements? The fact that he has not participated as a long in the very stocks he mentions negatively, AMZN, NFLX and GMCR reveals his stupidity. They all have something in common. Dominant home run stocks. Look at the charts. This guy is either a moron or just a lazy liar, trying to make a few pennies on the downside. His little piece that is actually getting e-printed is the second funniest thing I have seen lately. The first funniest was yesterday afternoon when a Frenchman was on CNBC trying to pitch Chryslers. Now that was really funny!
Could you link or cut and paste the whole article by Melvin? This guy has been a naysayer from day one. My comments below in ( ) as to what you posted so far:
"Other companies have rushed into offer the single-serving, K-cup style packets (if anyone is making or selling a "kcup", then GMCR is making money on it--except for the instant coffee Sturm kcup and that is in litigation). Even old line favorites such as Maxwell House and Folgers are in the mix these days (Yes, Folgers, the number one retail coffee in the United States picked kcups and GMCR for its entry into sealed single serve packets. Don't understand mention of Maxwell house, unless he is referring to a pod/filter packet they may make. No kcups by them). This is going to hit margins as the company loses pricing power for its coffee products (they are the market leader, leaders don't really lose pricing power in this scenario). I am starting to see other one-cup brewers on the market (give us some details. Did you see the Mr. Coffee brewer--oops, that is Keurig. Did you see the Cuisinart, oops again, still Keurig. How about the Breville, strike 3, still Keurig. Tassimo is out there, and having to offer $50 rebates to help move merchandise. Dolce gusto is coming, but sort of a awkward to use machine and limited coffee selections), and the company eventually will have real competition for the machines as well. (hard to know on this other than ones mentioned. Plus, there are still brewer patents, Kraft paid 17m to Keurig to settle patent litigation over the tassimo brewer)"
I'm often told that I should buy shares in companies whose products I use. After all, that was part of Peter Lynch's legendary success. In his now-classic book, One Up on Wall Street, Lynch tells the story of his wife discovering L'eggs pantyhose and his decision to buy shares of Hanes Brands, a stock that turned out to be a huge winner. ..
oh yeah, by the way ...Prices of k-cups just RAISED or are in the process of being raised 10% ...all the brewers that make K-cups (Mr. Coffee, Keurig, Cuisinart) are GMCR revenue generating licensed or owned brewers and will be for several more years (patents) ... as this guy has his in his garage collecting dust, most others have one at work one at home, one in their college kids' dorm rooms, and has caused the same thing to happen at their neighbor's house/appartment/condo ... and just like NFLX and AMZN is has become a worlwide well know BRAND.