tall americana with room for cream?
We believe in Coffee. We believe in $GMCR, and even though this is not a stock we would hold for the long run, we believe there is a trade to be made. But... We don't think now is the right time.
Disappointing sales, disappointing new product 2.0, Soda machine taking forever to be announced (hey maybe we get lucky tomorrow!) Recalls...
And the note:
"Bank of America Merrill Lynch said it expects the new device to make its debut on May 14 and to have a premium price point of $300 plus per machine and $1.00 to $1.20 per pod. "
Really?... $1 or more per pod... man, that really got us perplexed.
So well, there are way too many things that could go wrong at tomorrow meeting. And eve though we may see a bottom bounce if the numbers do not disappoint, well, we are sticking to our plan previously mentioned: Do not buy until after ER, you won;t miss the rally if there is one.
Here’s what investors can expect:
Earnings: The company is expected to report earnings of $1.05 a share, down from $1.08 a share in the year-earlier period, according to analysts polled by FactSet.
Revenue: Those same analysts are expecting revenue of $1.151 billion, up from $1.103 billion a year ago.
the chart snap
Watch for a touch at previous low at $108.95. We believe the stock is heading down there. Don't worry, it is a healthy move. If the price action on good volume breaks pass this low, expect down pressure to retest the bottom of the channel... ouch.. an ugly hand shake to $105 and below.