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Strategies & Market Trends : Turnarund Investing -- Ignore unavailable to you. Want to Upgrade?


To: Good Fundamentals who wrote (1101)5/10/2012 10:59:26 PM
From: bankbuyer  Read Replies (2) | Respond to of 1876
 
RE "The flavor of the coffee in the K-cups isn't great " .

You guys are a riot. Pay a premium for a shitty cup of coffee. Lol

Buy the stock though. Lol Lol



To: Good Fundamentals who wrote (1101)5/10/2012 11:21:56 PM
From: batman100231 Recommendation  Respond to of 1876
 
i take it your not invested in gmcr ---at least i hope not.

they make more than 100% of the profits from the K Cups the brewer is sold at a loss.

the problem comes when the patent expires is anyone can make a k cup for 1/5th the cost..

that's how 15B market cap evaporates. this story has been out there for a while. the company just did some stuff to make the evaporation faster. it's always been about the patents.



To: Good Fundamentals who wrote (1101)5/10/2012 11:56:49 PM
From: Covenant2 Recommendations  Respond to of 1876
 
When the K-Cup patent expires, SBUX is supposed to launch their own machine

That's all well and good, but it is tangential. The money to be made by others and lost by GMCR is companies selling coffee in packages which will work in the existing installed base of Keurig machines, not competition from another machine. This is where GMCR margins come from in this razor/blade business.