On several occasions I wrote that I have trouble finding new bargains. In the beginning of 2014 however I found something different. Namely a way to gain when the share price of Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR, later in the article: Green Mountain) will have declined: buying Jan 2016 put options. In this article I want to answer the question why I want to ‘short’ Green Mountain.
Green Mountain Coffee Roasters Inc.
Green Mountain produces and sells single-cup coffee makers and produces and sells K-Cups (the cups to put into those coffee makers or brewers), this is comparable to the in the Netherlands more familiair Senseo machine. The K-Cups Green Mountain sells can contain their own coffee brands but they also have several license agreements with for example Starbucks and Dunkin’ Donuts.