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One consumer goods player that insiders are in love with here is
Green Mountain Roasters (
GMCR), which is engaged in the specialty coffee and coffee maker businesses. Insiders are buying this stock into major strength, since shares are up a whopping 100% so far in 2013.
Green Mountain Coffee Roasters has a market cap of $12.5 billion and an enterprise value of $11.4 billion. This stock trades at a reasonable valuation, with a trailing price-to-earnings o 28.71 and a forward price-to-earnings of 22.30. Its estimated growth rate for this year is 35.4%, and for next year it's pegged at 15.1%. This is barely a cash-rich company, since the total cash position on its balance sheet is $352.20 million and its total debt is $323.60 million.
A director just
bought 14,000 shares, or about $1.05 million worth of stock, at $75.14 per share.
From a technical perspective, GMCR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last two months, with shares moving higher from its low of $67.51 to its intraday high of $84.41 a share. During that uptrend, shares of GMCR have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now started to push shares of GMCR into breakout territory above some past resistance levels at $82.51 to $82.95 a share.
If you're bullish on GMCR, then look for long-biased trades as long as this stock is trending above $80 or above its 50-day at $76 and then once it breaks out above its new 52-week high at $84.40 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 3.80 million shares. If that breakout triggers soon, then GMCR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $100 to $110 a share.
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