I found this from the comments page of seekingalpha article.
Reasons to buy GMCR
1- Ideal M&A candidate - Possibly Nestle's
2- Distribution resources and expertise of K-cups would make GMCR the only reliable supplier. Competition cannot build a distribution system efficient and effective as GMCR in the near future. Intensive capital investment / Mangement / Customer base would be years in the making.
3- GMCR missed estimates 3rd Calendar QTR 2011 and then smashed estimates succeeding QTR. Missed estimates last QTR and should exceed estimates 2nd Calendar QTR 2012
4- Starbucks started selling K-cups in all their retail stores 2nd Calendar QTR 2012. Should increase earnings.
5- Starbucks seems committed to strengthen relationship with GMCR
6- Over 11 million shares traded Friday - It looks like shorts are starting to cover.
7- There has not been any foundation to allegations of wrong doing in their accounting policies. Just a lot of talk. Inventory of K-cups are liquid - can be considered a form of currency (Current Assets). Any oversupply in one QTR increases sales in succeeding QTR. I was in Bed , Bath and Beyond a couple of months ago. For the first time some K-cups were on sale. (Holiday specialties ). Two days later they were cleaned out. Companies that manufacture durable goods and create excess inventory (Autos / Appliances etc) cannot be compared to a temporary oversupply of K-cups.
8 - Could Kroger / Walmart / McDonalds use GMCR as their supplier ???. There are endless potential possibilities for the growth of K-cups manufactured by GMCR. Their quality / numerous established distribution facilities nation wide will continue to add growth and will prevail.
Long GMCR -----------------------------------------------------------
My view... 1) I add P&G/Starbucks & Kraft as well to the M/A list. 2) The fall in coffee prices last quarter should have a positive impact in earnings. 3) Anticipating new international partnerships to be announced. 4) around $500 mil Buyback to be announced.