Continuation of Keurig Green Mountain (GMCR).
CONCLUSION:
Keurig Green Mountain Inc gave us very little evidence (in 1998-2000) that it was about to stage a massive 49,616% rally over the next 14 years. In fact, even the company’s own management was not convinced that Keurig Coffee Systems and Green Mountain’s K-Cups would revolutionize the industry.
There was only one way to take a legitimate position at that time. First, you would have had to have an in depth understanding of the company and the exiting potential associated with Keurig/K-Cups. That could only be done through fundamental analysis. Meaning, you would have had to study the company in great detail and then concentrate on the new technology associated with Keurig to fully comprehend the potential.
It is only after understanding the upside associated with Keurig would one be able to start paying attention to the technical side of the equation. Otherwise, it would not had made any sense to take a long (or any) position in GMCR, regardless of what the stock price was doing.
It is only after the stock price begins to break out or set higher highs, an analyst familiar with the fundamental picture would note that the market is starting to confirm the fundamental potential and would consider taking a legitimate long position. Finally, one would have to be very patient with Green Mountain and hold it over an extended period of time. Suffering through a number of 50%+ declines while adding to a long position at various bottoms.
Final Prescription: Fundamental Analysis + Technical Analysis + Patience = A Massive ROI.
Making Millions While Shrinking Your Waistline
| Company Name: Medifast Inc | Stock Symbol: MED | Industry: Consumer/Weight Loss |
| Percent Appreciation: 8,250% | Number of Bags: 82.5 | Holding Period: 12.5 Years |
| Entry Date & Price: Jan, 2002 @$0.40 share | Exit Date & Price: Current ($33.4/share) | Original Investment($10,000): $825,000 |
Company Description: Medifast, Inc. is engaged in the production, distribution, and sale of weight loss and weight management products and other consumable health and diet products. It operates through two segments, Medifast and MWCC and Wholesale. The company offers bars, bites, pretzels, puffs, cereal crunch, drinks, eggs, hearty choices, oatmeal, pancakes, pudding, soft serve, shakes, smoothies, soft bakes, and soups under the Medifast and Essential 1 brands and for private label customers. It also provides nutritional products; and meal replacements comprising vitamins and minerals, as well as other nutrients essential for good health.
The company operates Medifast weight control centers that offer programs for weight loss and maintenance, customized patient counseling, InBody composition analysis, and monitoring with a BodyGem that determines resting metabolic rates. As of December 31, 2013, Medifast, Inc. operated weight control centers in 75 locations; and 41 franchise centers. The company sells its products through various channels of distribution comprising the Internet, call center, independent health advisors, medical professionals, weight loss clinics, and direct consumer marketing. Medifast, Inc. was founded in 1980 and is headquartered in Owings Mills, Maryland.
Making Millions While Shrinking Your Waistline (10 Bagger Book, Part 5) Google