Keurig Green Mountain, Inc. (NASDAQ: GMCR)
Keurig Green Mountain, Inc. (GMCR), a coffeemaker company yesterday announced that they are being acquired by JAB Holding Company (JAB). JAB will pay $92.00 per share in cash, totaling approximately $13.9 billion to acquire GMCR.
Keurig Green Mountain, Inc. CEO Comments
Brian Kelley, President and CEO of Keurig Green Mountain commented,
“This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees by combining Keurig Green Mountain with JAB’s global coffee platform. JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button.” Business Wire
GMCR Technical Analysis
GMCR gapped up in price yesterday to $90.06, up from the prior day’s close of $51.70, which is a 74% increase on the favorable news. Taking a look at the daily chart, we can see the last time GMCR traded at this price level was on May 22nd, when it traded at highs of $90.76. Taking a further look back at the daily chart we can see that GMCR has been on a steady decline the whole year dating back to December 10, 2014 when it traded at its 52 week high price of $141.69. More recently, there has been a spike off of the 52 week low price of $39.80 reached on November 18th. GMCR does have a large float of 110.02 million shares and was trading on 5 times the normal daily trading volume. GMCR did reach pre market highs of $91.19, but gave back $1.13 at the open, or equivalent to 1%. For trading purposes my entry point would have been $90.25 looking for a run to $91. My stop loss would have been $90, fearing anything below that and the stock would start to fill in the gap up.
Keurig Green Mountain, Inc. produces and sells coffeemakers and specialty coffee in the United States, Canada, and internationally. The company sources, produces, and sells coffee, hot cocoa, teas, and other beverages under K-Cup, Vue, Rivo, K-Carafe, K-Mug, and Kold brands; and coffee in traditional packaging, including bags and fractional packs, as well as offers whole bean and ground coffee in bags, fractional packages, and cans. It also provides other specialty beverages in pods, which include hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa, and other beverages for use with its Keurig hot brewing systems, as well as sells coffee-related equipment and accessories. In addition, the company sells pods under its own brands, such as Green Mountain Coffee, the Original Donut Shop, and Van Houtte. It distributes its products through away-from-home and at-home channels to retailers, including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; and restaurants, hospitality accounts, office coffee distributors, and partner brand owners, as well as to consumers through its Websites. The company was formerly known as Green Mountain Coffee Roasters, Inc. and changed its name to Keurig Green Mountain, Inc. in March 2014. Keurig Green Mountain, Inc. was founded in 1981 and is based in Waterbury, Vermont. Yahoo Finance