Editor’s Note: Related tickers: Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), Starbucks Corporation (NASDAQ:SBUX), Sodastream International Ltd (NASDAQ:SODA), Moody’s Corporation (NYSE:MCO), Campbell Soup Company (NYSE:CPB), Monster Beverage Corp (NASDAQ:MNST)
This Specialty Coffee Company Is a Winner, but Risks Exist (DailyFinance)
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is a unique story. Despite revenue and earnings growth, a strong balance sheet, and an effective strategy, the short position is north of 37%. Therefore a lot of investors/traders believe a gap down is on the horizon. …The shorts are all over Green Mountain for two reasons. One is that if a licensing deal is terminated with, let’s say, a Starbucks Corporation (NASDAQ:SBUX) or Dunkin’ Brands Group’s Dunkin’ Donuts, it could bring significant pain for Green Mountain’s business. Though not ideal, it wouldn’t be as big of a problem as people think.
Starbucks Corp. Coverage Initiated by Analysts at Wedbush (SBUX) (Zolmax)
Equities researchers at Wedbush started coverage on shares of Starbucks Corporation (NASDAQ:SBUX) in a research report issued on Wednesday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $80.00 price target on the stock. Wedbush’s price target suggests a potential upside of 10.90% from the company’s current price. The analysts wrote, “We expect continued Americas and global comp momentum, accelerating Americas and CAP unit growth, and multiple near- and medium-term CPG and emerging market opportunities to result in raised FY14 EPS estimates.
Moody’s reviewing Starbucks debt for upgrade (MSN)
Moody’s Corporation (NYSE:MCO)‘s Investors Service on Tuesday put Starbucks Corporation (NASDAQ:SBUX)’s credit rating on review for an upgrade, based on its plans for a $750 million debt offering. Starbucks currently has an investment-grade “Baa2” senior unsecured rating from Moody’s. A higher credit rating could make it easier for the company to borrow. Starbucks plans to use proceeds from the offering for general corporate purposes, including dividend payments, stock repurchase plans or potential acquisitions.
Would You Eat K-Cup Soup, Campbell’s New Keurig Coffee-Like Instant Snack?! (eOnline)
Have you ever wanted to eat soup but it was just too much work? Probably not, because most people just put it in a bowl and microwave it. But making soup just became even easier, if you can believe it. Now you can make soup in your coffee maker. Campbell Soup Company (NYSE:CPB) has announced a partnership with Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) to create K-Cups, single-serve instant soup packets that can be made in any Keurig-like coffee machine.
3 to Watch: BBRY, GMCR, QCOM (CNBC)
Starbucks’ grande latte costs $1 more in China (BizJournals)
If you buy a Starbucks Corporation (NASDAQ:SBUX) grande latte in China, you’re going to pay $4.80, which is about $1 more than what you’d pay in the U.S. The Wall Street Journal broke down the cost of a latte in China, with Starbucks (NASDAQ:SBUX) officials attributing the higher costs to higher rents paid in China, due to the stores there being larger. The higher prices put a dent in China coffee drinkers’ wallets: the average per capita income in China is about $7,500, compared with more than $42,500 in the U.S.
SodaStream: Plenty of Growth Left (DailyFinance)
As with any Israeli company, the threat of war in the Middle East always causes investors to pause on investments in the region. Recent threats of military action in neighbor Syria only add to those fears. Possibly this is part of the reason that, despite all the positive news, Sodastream International Ltd (NASDAQ:SODA) continues to trade at market low multiples, even compared to slower growing Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) and Monster Beverage Corp (NASDAQ:MNST). While threats of war probably won’t ever go away, the market for home beverage machines has plenty of catalysts to reach its goal of $1 billion in revenue by 2016.
Harper’s reports on campaign against Israeli-made SodaStream (NCROnline)
The latest issue of Harper’s Magazine provides a detailed and fascinating report about the Boycott Divestment and Sanctions (BDS) campaign against Sodastream International Ltd (NASDAQ:SODA), a kitchen appliance made by an Israeli company. The company has been the target of various boycotts, including one launched earlier this year by an interfaith group in the United States. Those interested in the nonviolent leverage of economic boycotts will find the Harper’s summary a fascinating and, in some respects, encouraging read.
GMCR Consolidates Canadian Coffee, Portion Pack Production To Montreal Facility (VendingMarketWatch)
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) announced it would consolidate all of its Canadian coffee and portion pack production to its Montreal, Quebec facility in Canada. GMCR expects to cease production at its Toronto, Ontario facility by March 5, 2014 affecting a total of 120 production and production support employees, or approximately two percent of its total workforce, whose positions will be eliminated, according to the press release.
