GMCR - Barron's and GMCR

06/01/08 04:36PM EDT
Barron's pointed out that GMCR is slightly over priced! The clever writer at Barron's asked the question is coffee the new black gold? At 44x NTM EPS people are buying into the single serve coffee brewing revolution. As I pointed out a few weeks ago, the GMCR business model has a few small holes in it, because a licensed roaster can't make any money. Importantly, GMCR is a regional company and does not have national manufacturing capabilities. As a result, it will be very expensive for the single serve revolution to spread past the North East.
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