Dean Morel submits:
Green Mountain Coffee Roasters Inc. (GMCR) reported excellent 2010 Q1 earnings on January 28th. No doubt followers have read the earnings reports and the conference calls transcript and now have a buzz on even stronger than two cups of Green Mountain Dark Magic could deliver. So is it time for this bear to wash some humble pie down with a cup of joe?
Absolutely not! One quarter does not bring the fat lady out to sing. In my bearish arguments here and here I argued that the main reason to put GMCR on a shorting watch-list is valuation. GMCR is overvalued and whether it takes one quarter or two years, companies sporting its valuation metrics end up under-performing the indices.