I am enjoying my second cup of one of my favorite growth stocks, Green Mountain Coffee Roasters. Its stock symbol is GMCR, and its had a great run of late. I think it has legs and will continue despite many saying its over-valued and doomed as a fad.
Personally, I don't see any growth stock that has developed a nice "moat" for its product and has a solid foothold as a "fad". What is their moat? Well GMCR owns the Keurig brewer and produces the coffee, selling in the millions. Its a unique product that is getting well established with the well-loved "razor and blade" business model. What about other associated products and coffee? GMCR has a sweet deal to get a cut of the profits, even down to ~6 cents per K-Cup sold of another coffee brand. Not bad. As for their solid foothold, well, GMCR provides coffee to McDonald's and has signed an agreement with Smuckers to offer mainstream Folgers and Millstone K-Cups. Again, not too shabby and not what many of us would consider the hallmark of a "fad". I like it.
Give GMCR a look and good trading!
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