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Friday, May 04, 2012

Coffee Bubble Bursts

I remember I stopped looking at coffee stocks last year because I was disgusted with their irrational runs.  It wasn't until GMCR earnings yesterday that I took a look again. Wow, did the bubble burst, especially GMCR with it's Keurig patent coming to an end.  Yesterday it shedded 50% of its ALREADY beaten up market cap.

And the saga continues today, with CBOU down an additional 18% after last night's earning.

JVA also had earnings yesterday.  It's at least holding up sideways long term, but the runfrom 8 to 15 had been erased.

PEET is the only one left that's still holding up in a long term up trend, even holding above its 200 day MA's.  But look at the carnage against it this week -- down 19%!!

All bubbles burst  -- except for PCLN.

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