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. Antioxidants are percolating
Green Mountain Coffee Roasters (Nasdaq: GMCR  ) is setting itself up as a wellness play.

The company behind the Keurig brewer is putting out a line of K-Cups packed with antioxidant vitamins and brain boosters. The Wellness Brewed line of portion packs offers coffees, teas, and fruit drinks that are brewed with vitamins and minerals.

Is the world ready to sip java loaded with an antioxidant-rich blend of vitamins C and E or the stress-reducing and brain-stimulating Theanine? Folks are willing to pay a premium for bottled water or smoothies with similar boosts, and it seems to be more than just a novelty.

Either way, Green Mountain isn't discontinuing any of its other product lines in pushing out the six new Wellness Brewed varieties that are initially available only online. It's a nice way to raise the bar on what's possible with home-brewed beverages just days before its K-Cup patents run dry.

2. A different kind of tea party
There's apparently a boom in high-end tea culture: Teavana (NYSE: TEA  ) posted better-than-expected results this week.

Net sales soared 38% to $43.1 million. New stores, the mid-quarter acquisition of 46 Teaopia stores, and a decent 3.5% uptick in same-store sales helped pave the way for the retailer, which sells fancy loose teas and upscale tea-making equipment.

Profitability clocked in at $0.03 a share after backing out items related to the Teaopia purchase. Analysts were only banking on net income of $0.02 a share on $40.5 million in net sales.

Teavana has been a market laggard since going public last year, but the economy can't be doing too badly if business is brisk at Teavana, with its colorful canisters brimming with a hundred varieties of exotic teas.

3. New tunes for used cars
Sirius XM Radio (Nasdaq: SIRI  ) is growing its reach to buyers of secondhand cars.

The satellite radio giant's latest deal was announced yesterday, giving buyers at any of Hendrick Automotive Group's 84 dealerships three free months of Sirius or XM subscriptions when they purchased preowned vehicles with factory-installed receivers.

This is obviously not the first deal that Sirius XM has brokered to open a line of communication with buyers of used cars. The media heavyweight now has arrangements in place with more than 6,000 showrooms across the country.

However, every new deal is incremental and worthy of being celebrated.

4. This is a Conn's artist
Not all consumer electronics retailers are troubled these days.

Conn's (Nasdaq: CONN  ) posted blowout quarterly results this week. The Southern retailer delivered a mind-boggling 21.5% surge in comps, though this obviously wasn't the handiwork of TVs or PCs. The big drivers at Conn's this past quarter were mattresses and furniture items.

Yes, that's the secret to Conn's success: It doesn't sell the media items you find at traditional consumer electronics stores that are fading in popularity as digital distribution takes over, but rather bulky, big-ticket items including bedding, sofas, and even riding lawn mowers.

Don't laugh at the mowers -- there are plenty of lawns and farmland in Conn's Texan stronghold.

5. Rekindling the Kindle
There was no smartphone or smart TV announced at Amazon.com's (Nasdaq: AMZN  ) media event on Thursday, but the updates on its Kindle products were encouraging.

Is the story here that Amazon is lowering the price bar with its $159 entry-level Kindle Fire? Is the story here that Amazon is selling a higher-end 4G LTE version, raising the bar on connectivity with its $50-a-year data plan? Or is the takeaway that Kindle's now setting the standard for traditional e-readers with its white-backed Kindle update?

It's all of the above, and it was apparently good enough to push shares of Amazon to a new high yesterday.

Well-played, Jeff Bezos.

Keep it coming
If you want to make some smart stock moves yourself, find out The Motley Fool's top stock for 2012. It's a free report, but only for a limited time so check it out now.

There's a premium report on Green Mountain, exploring the Keurig champ's challenges and opportunities. A free year of updates is included, so get up to speed on the java heavy.

The Motley Fool owns shares of Green Mountain Coffee Roasters, Teavana Holdings, and Amazon.com. Motley Fool newsletter services have recommended buying shares of Amazon.com and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Green Mountain. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2009393, ~/Articles/ArticleHandler.aspx, 9/1/2014 7:35:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement