Green Mountain Coffee was added to Levott's Magnificent 8 list
on 3/14/2008 and the stock is up over 21% as of the close on 3/27/08. This is a pretty good return for being on our
list for 2 weeks. Here are just a few of
the reasons we liked the stock.
The Earnings Per Share (EPS) has been rapidly improving when
comparing the same quarter to the previous year:
- Q2
2007 up 63% compared to Q2 2006
- Q3
2007 up 87% compared to Q3 2006
- Q4
2007 up 133% compared to Q4 2006
- Q1
2008 up 20% compared to Q1 2007 (note Q1 growth has historically been
lower compared to other quarters)
The growth rate that we have seen from different sources has
consistently been above 20 percent for 2008 and this is exactly what we are
looking for.
Another big plus with GMCR was there was some insider buying
back in December of 2007. Three insiders
bought over $400,000 of their stock and at an average price around $36.43 per
share. The current price is below this
average price these insiders bought it for.
These are just a few of the reasons we liked Green Mountain
and added it to our Magnificent 8 back on 3/14/08.
As always, this is NOT a recommended buy list - you need to
do your own research and evaluate risk tolerance - Levott does not give individualized
investment advice.