That 5.55 million forced dumping of GMCR stock spooked the market and forced the shares doewn to unrealistic levels.
That, followed by endless bad news and funds exiting the stock entirely made this stock fall below intrinsic value. I do not doubt eventually tht competitors will force down GMCR's profit margins, but in the interim, Green Mountain still has the dominant shelf space and dominant retailers like Starbucks and Dunkin Donuts still use them to manufacture k-Cups.
I expect $30 after earnings and growing to $40-45 as the build up to Christmas sales and then low price of coffee beans will then kick in to show larger profits.
__________________________________________________ The company said its founder and chairman, Robert Stiller, and lead director William Davis together were forced to sell 5.55 million Green Mountain shares on May 4 and May 7 to meet margin call requirements, at a time when trading by insiders was prohibited by company policy.