Monday, May 11, 2009

Green Mountain Coffee Roasters (GMCR)


This one has been vaguely on the edge of my consciousness, so it's not a "Shoulda, Coulda stock" but a completely missed trade.

All I know about Green Mountain Coffee Roasters Inc. (GMCR) is that it is the sole supplier to McDonald's. The stock's low was back in November, and ever since then it has been making higher lows and higher highs despite the worsening overall stock market.
It was in a channel as you can see in the chart, from November to March. In April, it broke out of the channel, then back-tested the upper channel line, and then off to the races on the earning report.

The stock looks extremely extended for now, but coffee futures are spiking up due to supply concerns. It will be interesting to see if the gap gets filled.

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