Peet's Coffee & Tea Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Peet's Coffee & Tea (Nasdaq: PEET) jumped as much as 15% in early trading on a day of speculation.

So what: Word on the street is that sometime soon Peet's will announce a partnership with Motley Fool Rule Breakers favorite Green Mountain Coffee Roasters (Nasdaq: GMCR). Janney Capital analyst Mitchell Pinheiro started the buzz this morning when he raised Peet's to a buy rating and said the partnership may be announced by March 6 -- this Sunday.

Now what: Peet's was passed over by Starbucks (Nasdaq: SBUX) for a partnership, but if this rumor becomes reality, it would be a big boost for Peet's. Rumors are risky to buy on, so I would prefer to wait until we hear solid word on a partnership as opposed to believing this analyst. I'll keep my eyes on news from Peet's, but I'm not buying today; it's a risk this Fool isn't willing to take.

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