Big things do come in small packages. Diedrich Coffee
First, the coffee roaster decided to refocus on selling Keurig K-Cup coffee. Diedrich has become a leading provider of coffee for those Keurig quick-and-easy cups o' Joe under license from Green Mountain Coffee Roasters
As a direct result of that fundamental little revolution, Diedrich's stock has bounced back like no stock I've ever seen. Coming back off a 52-week low of $0.21 per share this spring, Diedrich's market cap was a paltry $1.2 million at one point. If that's not a small package, I don't know what is. And now the turnaround is complete and the stock sports a price near $25.80 per share.
If you do the math, you'll see a heart-stopping 12,200% return on your investment if you were brave and lucky enough to buy during Diedrich's darkest hour. And it is virtually locked in, because today's price includes the 28% premium that Peet's Coffee & Tea
The buyout must have come as a shock to Diedrich's management. Less than two weeks ago, Diedrich announced that CEO Russ Phillips was stepping down. Recruitment specialist Korn/Ferry International
Peet's distribution system plus Diedrich's hot products and top-notch coffee roasting processes should add up to something greater than the simple sum of the parts. Sure, even with Diedrich under its wing, Peet's is still a far cry from the multibillion-dollar sales of Starbucks
Don't kick yourself too hard if you missed out on Diedrich's extravagant gain. Longtime shareholders are doing fine, as the stock has delivered better than 440% gains over the last five years and 640% over the last three. But as we've seen, in between, Diedrich teetered on the brink of extinction.
This is exactly the kind of roaring-back-to-life move you're hoping for if you are buying Sirius XM Satellite Radio