Even after Green Mountain Coffee Roasters' (NASDAQ:GMCR) remarkable fall from grace, Austin still doesn't recommend buying shares. Despite what appears to be a huge discount for still high growth rates, the environment Green Mountain will be operating under for the next few years will be far different from the last few. Even ignoring concerns about device saturation, management missteps, and accounting shenanigans, Green Mountain will still probably have to fend of the threat of other, cheaper coffee-pod manufacturers once its key patents expire in September.
Instead, you should look at quality, proven companies like The Motley Fool's Top Stock for 2012. It's our chief investment officer’s highest conviction pick for this year, and it may be yours, too, after reading this totally free report.
Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Starbucks and Green Mountain Coffee Roasters. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.