This Week's 5 Smartest Stock Moves

If you're feeling good about the market, you're not alone. Take my hand as we go over some of this week's more uplifting headlines.

1. The best part of waking up is Folgers in your K-Cup
Green Mountain Coffee Roasters (Nasdaq: GMCR  ) continues to brew its way into the hearts of the mainstream. The company behind the Keurig single-cup coffee brewers is teaming up with J.M. Smucker (NYSE: SJM  ) to crank out licensed Folgers and Millstone K-Cup portion packs.

I've had a Keurig brewer for three years, and I've fed it a steady diet of premium indie java. I can't imagine that my wife would want Folgers over her Timothy's or Coffee People K-Cups. However, as Keurig grows its user base, it's certainly better to offer as broad a range of coffees as possible.

It's easy to see why Smucker is hopping on the Green Mountain bandwagon. Green Mountain moved 1.5 million Keurig single-cup brewers during the holiday quarter, along with 650 million K-Cup refills.

2. Dream a little DreamWorks
When you beat analysts in 16 of the past 17 quarters, you're either very good or analysts are very bad.

Let's split the difference with DreamWorks Animation (NYSE: DWA  ) and call it a little bit of both. The computer-animation studio earned $0.50 a share on $194.2 million in revenue during the fourth quarter, well ahead of Wall Street's expectations of a profit of $0.37 a share on around $177 million.

This was supposed to be a forgettable quarter for the studio. Movies rock the multiplex before faltering on DVD these days. DreamWorks Animation delivered market-thumping results even though it hasn't hit the box office since last March. It has two flicks coming out in the next three months, so this party may just be getting started.

3. More star than dog
Sirius XM Radio (Nasdaq: SIRI  ) came through with another strong quarter yesterday, when it posted the first profitable quarter in its volatile post-merger history. Even the company's adjusted deficit of $0.01 a share was ahead of Mr. Market's expectations.

The company closed out 2009 with more self-pay subscribers than it had at the start of the year. It expects to have a record 19.3 million subscribers by the end of 2010, a healthy step up from the 18.8 million Sirius and XM accounts it services now.

Now generating positive free cash flow and with another three years before any major refinancing milestones, the satellite-radio operator looks like a lousy claim in your corporate death pool.

4. They're still having fun in China
Online gaming is still a booming industry in the world's most populous nation. China's NetEase.com (Nasdaq: NTES  ) delivered $189 million in fourth-quarter revenue, 62% ahead of where it was a year ago.

A key driver for the period was NetEase's relaunching of Activision Blizzard's (Nasdaq: ATVI  ) World of Warcraft in China in mid-September. The margins for the licensed franchise aren't as chunky as NetEase experiences with its proprietary multiplayer fantasy games, but it's incremental. It also keeps the property out of the hands of rival operators.

5. "Pfizer" rhymes with "riser"
Pfizer (NYSE: PFE  ) won approval for Prevnar 13 this week. The childhood vaccine improves on the company's original, by offering protection for six additional strains of pneumococcal bacteria.

This is good news for Pfizer, because the added benefits afford the company the luxury of pushing through a 30% price increase on the popular vaccination.

Sorry, kids. You'll only feel a pinch.

Pfizer and Smucker are Motley Fool Inside Value recommendations. Green Mountain Coffee Roasters and Netease.com are Motley Fool Rule Breakers picks. Activision Blizzard and DreamWorks Animation are Motley Fool Stock Advisor selections. The Fool owns shares of Activision Blizzard, on which Motley Fool Options has recommended a synthetic long position. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is an optimist at every turn. He owns no shares in any of the stocks in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


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