Even on a day when the Dow Jones Industrials Average
The misery is getting spread well off the Dow, though, as Supervalu
As for Green Mountain Coffee Roasters, I’ve been bearish on this company for some time now, and feel a bit vindicated on my Supervalu miss by the company’s nearly 11% decline over the last three days. The java brewer may seem like the intersection of a deep-value stock with high-growth potential, but this company also seems too wounded for me to support an investment today. The uncertainty surrounding the expiration of their k-cup patents can’t be over-stated. Major grocery slingers from Safeway to Kroger have already started selling cheaper pod alternatives, and I believe they could be the first drop in a bucket of growing competition for the king of single-serve coffee.
How to play it
What does it all mean? On a day when the market is soaring, some stocks are still losing big. Should investors put their tails between their legs and run for bonds or some other "safe" investment? NO! Just yesterday, I wrote about why the market was a screaming buy, and gyrations like this are the friend of the long-term investor.
The patient investors who recognize big swings for what they are will benefit in the long run. Watching the market swing up and down is no way to invest, ever. Instead, investors should buy and hold great stocks for the long run, like The Motley Fool's Top Stock for 2012. It’s our chief investment officer’s highest conviction stock for the next year, and it will probably be yours, too, after you read his reasoning by by clicking here now.
Austin Smith owns no shares of the companies mentioned here. The Motley Fool owns shares of Supervalu and Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Motley Fool newsletter services have recommended buying calls on Supervalu. 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.