Does the Keurig Cup Decide Caribou's Fate?


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Are investors right to panic over Caribou Coffee's (NASDAQ: CBOU) recent Keurig cup downfall? Opinions regarding the recent struggle are mixed, but there is no doubt that CBOU is seeing increased competition in the K-cup category from Starbucks (NASDAQ: SBUX), Dunkin Brands (NASDAQ: DNKN) and Green Mountain Coffee Roasters (NASDAQ: GMCR).Caribou's earnings have widely been on the up and up in recent months due to the popularity of the K-cup system. However, the coffee brewer is now experiencing moderated volumes that are slowing revenue growth and forcing analysts to question whether or not the buck can heed the disappointing outcome. Research firms such as Jefferies and Dougherty & Company view the lack of increased revenue as a sign that investors should buy the stock. The worries appear to be overblown, with analysts at Jefferies more concerned about GMCR's stock difficulties."Stock has moved on K-Cup concerns, but we think it's a GMCR inventory issue that may take several qtrs to stabilize, and is not indicative of structural problems at CBOU. At current valuation

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorNewsRetail SalesTopicsAnalyst RatingsGeneralDeutsche BankDougherty & CompanyJefferiesKeurig CupMorgan Stanley