They do single serving coffee machines. Was a huge success in the office market so they moved into retail and it is now the best-selling retail coffee machine in the market.45% growth in their last quarter. Thinks it will ultimately get taken out.
When valuations get a little too rich, you have to be careful of this. PE is around 13X or so. Expected growth of earnings is starting to decline. Also, below the 200 day moving average.
Had a great concept but the patent has run out now. Other companies can come out with their own K-cups. He is not as positive as he was before the patent expired.
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(Market Call Minute.) A very volatile stock. Thinks that the Coca-Cola (KO-N) announcement was its big move. He would probably sell this one now.