Saturday, October 9, 2010

"Perk up your portfolio with some fast growing Coffee Stocks and we'll throw in a sandwich stock too!"

Dow Jones Industrial Average   10,986   -  daily close on October 6th , 2010


I want to start with a special dedication wish  to the love of my life, my wife Deborah. Tomorrow we celebrate our 30th Wedding anniversary and she is an amazing and wonderful woman who is kind, generous, hard working, sexy, funny and brilliant. Did I miss anything? Most definitely.  So anyway, we make three kinds of coffee in the morning. A pot of decaf for me, A pot of half-caff  for my wife, and a pot of full -caff for my daughter. It is no wonder that the coffee stocks are doing well with everybody having their own special pot! Such is the secret of coffee's success. Everybody likes it a different way.

     Green Mountain Coffee Roasters (Symbol GMCR, $28.67) has a long term growth rate of 37.37%. Earnings per share in 2010 are .69 cents and in 2011 $1.18. The 3 year Total return on shares of the stock is 225%. Get the picture?  You just take the little single serving cup and plunk it in the machine at work and out comes the coffee. No burnt coffee sitting in pots like the old days!

  Peet's Coffee and Tea, Inc. (Symbol PEET, $33.80) is a company with a 17.33% long term earnings growth rate.  5 year sales growth is 14.15% and these guys will deliver groceries to you too! 2010 earnings per share are looking like $1.29 for 2010 and $1.55 for 2011. This California based company has a Quick ratio , (assets to liabilities) of 6: to 1, and plenty of space for upside revenue growth.

Caribou Coffee Company (Symbol CBOU, $10.44) is our low priced stock entry here. This Minnesota based company is up 38.86% year to date and 54.24% over 3 years. Sales are growing about 8% a year, but if you are in Minnesota it is cold in the morning and you will need your coffee to warm up. This is worth a look as a Small Cap holding in your portfolio. 2010 earnings of .42 cents per share and 2011 is projected at .56 cents per share. 

Of course you can't do an article about coffee without including the mega growth company, Starbucks Corp. (Symbol SBUX, $26.10). This company even after all these years of expansion is still growing at 11.5% a year in revenues. Kudos to Starbucks for making medical benefits available to part time employees. It shows companies can still make money and help people Too! 2010 earnings will be $1.24 and 2011 projected at $1.42 per share. One year Total Return of   38.6%. Enjoy your Mocha FrapaChino.  Starbucks is also the inventor of a whole new language that you get to learn to speak!  
......and now for your sandwich course we will be serving up Panera Bread Company, (Symbol PNRA, $88.66).  This dynamo has a 5 year sales growth rate of 19.6%. A one year total return of 48.6 % and 3 year total return of 123.5%. 2010 earnings of $3.54 and 2011 earnings projected at $4.16 per share make this bakery-cafe business the best of bread and coffee.
They are an excellent long term BUY.
These big company logos are messing up my spacing!  But you can buy any of these stocks with a 3 year time horizon and you should do well.

Have a wonderful day. Stay healthy and safe.    Freewilly

1 comment:

  1. Voice of Reason, I read your blog article. The allegation that a US based Hedge fund would be laundering terrorist money is a serious one. When I looked on Yahoo finance at the institutional holders of RCRC I found Wells Fargo, Royce, Blackrock,and Vanguard as the top holders. I did see some past involvement by NY based Bret Barakett's Tremblant Capital Hedge fund but I do not know anything about them.

    Freewilly

    ReplyDelete