This reminds me a lot of how Starbucks shafted and got out of their distribution deal with Kraft
They have the best attorneys
This is a move to get out of Green Mountain deal...You can be very clear on that
This new machine makes espresso & brewed coffee
look at what they did to KRAFT.
Starbucks wins Kraft appeal over coffee deal
NEW YORK | Fri Feb 25, 2011 5:04pm EST
(Reuters) - The final legal obstacle was removed to Starbucks Corp (SBUX.O) ending its coffee distribution agreement on March 1 with Kraft Foods Inc (KFT.N) by a U.S. appeals court ruling on Friday.
Green mountain only broke out last year above $40 because of the news that starbucks was partnering and that elimnated the fear that they would go head to head
now patents are expiring & Starbucks is going head to head...worst fears confirmed
today with this news GMCR is worth far less than $40
market repricing GMCR....it should settle somewhere between $20-25
Dude, gmcr will shaft your balls if not cover.
Starbux is loosing business to gmcr and will be out of business in a few yrs thats why they decided to do something different. Don't be in love with sbux and little noise. Otherwise, your balls will all the hair when you see gmcr jump back to $60s.
already been one downgrade today by Bank America/Merril
get ready for a wave of downgrades next week
this is a 32 pe stock...priced as a high growth tech stock in an industry that has explosive growth...err I mean
look at Starbucks history, they are brutal
yes they are sellilng their coffee in k-cups because so many people have machines.
but watchout, as soon as patents expire, they will find a loophole to get a new distributor
GMCR long term target: $5 - $10
notice how starbucks was very careful in verbage in its conversation about GMCR
"for now" they are supporting Kurig
lol....their product comes out in Fall, lets see how they undercut GMCR and how supportive they are when their product goes mainstream
look forward, not back
$10 by patent expiration!
This is where it gets interesting
death by a thousand cuts
competitors creating machines that do the same thing
now I honestly would have never guessed Starbucks would stab them in the back so quickly
this is a short sellers dream
next starbucks will pull out of the deal like they did with Kraft and someone else will make the k-cups for less
oh wait that part happens when the patent expires
$5.00 in 1 year.
you forgot all of the executives selling before bad news as well as constant selling. The execs milked as much money from people as they could by buying companies at exorbitant costs to try and kill competition, starbucks used them to test market the single cup idea and now are going to dump them and take all of the profits.
Green Mountain should blow though the $40 range tommorrow and be around $20 by march options expiration. I am just going to keep buying puts all of the way down
The two companies are in arbitration. Starbucks said Kraft had repeatedly breached the agreement, under which Kraft distributes Starbucks coffee to an estimated 40,000 grocery stores and other retailers in all 50 U.S. states and Canada, as well as in Britain and Europe.
The cases are Kraft Foods Global Inc v Starbucks Corp, U.S. District Court, Southern District of New York, No. 10-09085 and No. 11-389-cv in the U.S. Court of Appeals for the 2nd Circuit in New York.