2-Star Stocks Poised to Plunge: Green Mountain?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty coffee company Green Mountain Coffee Roasters (Nasdaq: GMCR  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Green Mountain's business and see what CAPS investors are saying about the stock right now.

Green Mountain facts

Headquarters (founded) Waterbury, Vt. (1981)
Market Cap $3.4 billion
Industry Packaged foods
Trailing-12-Month Revenue $3.6 billion
Management CEO Lawrence Blanford (since 2007)
CFO Frances Rathke (since 2003)
Return on Equity (average, past 3 years) 14.8%
Cash/Debt $139 million / $418 million
Competitors Farmer Brothers
Peet's Coffee & Tea
Starbucks

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 29% of the 1,537 members who have rated Green Mountain believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, TMFJLo, succinctly summed up the bear case for our community: "Quarterly earnings have given this stock a glimmer of hope, but long-term prospects will see [Green Mountain] gone. It's got no proprietary knowledge and no brand, plus stiff competition and higher commodity prices will only allow the most efficient coffee companies to succeed in the long run."

The bear case for Green Mountain is well known by now, but it's also important to understand both sides of the investment argument for the stock. In this brand new premium research report on Green Mountain Coffee Roasters, our analyst walks through everything investors need to know about the company. Better yet, every copy comes with a full year of updates completely free of charge. Make sure to claim your copy today by clicking here now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Green Mountain and Starbucks. Motley Fool newsletter services have recommended buying shares of Green Mountain and Starbucks. Motley Fool newsletter services have recommended writing covered calls on Starbucks. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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