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Would You Like A Million With That Coffee? (10 Bagger Book)

GMCR Chart

Company Name:  Keurig Green Mountain Inc Stock Symbol:  GMCR Industry:  Consumer Goods
Percent Appreciation:  49,616% Number of Bags:  496 Holding Period:  15 Years
Entry Date & Price:  Aug, 1999 @$0.25 share Exit Date & Price: Current Original Investment($10,000): $4.96 Million

Company Description:  Keurig Green Mountain, Inc. is engaged in the specialty coffee and coffeemaker businesses in the United States and Canada. The company operates through two segments, Domestic and Canada. The company sources, produces, and sells approximately 290 varieties of coffee, hot cocoa, teas, and other beverages in K-Cup and Vue portion packs; and coffee in traditional packaging, including whole bean and ground coffee selections in bags, and ground coffee in fractional packs.  The company was formerly known as Green Mountain Coffee Roasters, Inc. and changed its name to Keurig Green Mountain, Inc. in March 2014. Keurig Green Mountain, Inc. was founded in 1981 and is based in Waterbury, Vermont

Quick Trading Overview & Objective: The company went public in September of 1993 at around $0.50 a share (split adjusted).  Shortly after its IPO, the company’s stock declined by over 50%. It then proceeded to trade in a relatively tight trading range of $0.15-0.40 per share between 1994 and the second half of 1999. It was at that juncture that the stock broke out of its trading range to initiate a massive multi-year rally of 49,616% (as of 6/27/2014 @ $124.29)

We will now go back in time and take an in depth look at the company in order to determine if we could have taken a long position in early 1999. More importantly, we will look at Keurig fundamental/trading patterns over the last 15 years to ascertain if we would have been able to maintain our position over such an extended period of time in order to walk away with such massive gains.

FUNDAMENTAL ANALYSIS:

Investors in GMCR had a fairly long time window to initiate their original long position. To be exact, between the years of 1994 and 2000.  Yet, the best entry point was in the second half of 1999. It was the last chance and the best time for investors to load up on the stock before its massive rally would ensue.  People taking a position thereafter would see their returns in this stock diminish rather quickly. Luckily for you, you could have bought the stock as late as 2009 and still have a Tenbagger on your hands.

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Would You Like A Million With That Coffee? (10 Bagger Book) Google