David Sharek
David Sharek is stock portfolio manager at Shareks Stock Portfolios and the founder of The School of Hard Stocks.
Sharek's Growth Stock Portfolio has delivered its investors an average return of 18% per year since inception vs. the S&P 500's 10% during that time (2003-2020).
David's delivered five years of +40% returns in his 18 year career, including 106% during 2020.
David Sharek's book The School of Hard Stocks can be found on Amazon.com.
Green Mountain Coffee has a lot of haters. Yet the stock has defied the nay-sayers and delivered solid returns running from $9 to $35 since January 2009. With around 7% of coffee drinkers owning a Keurig device, the avaiable maket of 10% so GMCR still room to expand. Haters say the slow-down in Keurig sales means the stock has topped, but Keurigs were one of the hottest appliances to be purchased the past two years, so yes eventually the number of sales should slow and decline. GMCR doesn’t make money by selling Keurigs, it makes profit from selling K-cups — and there’s a lot of Keurig’s out there demanding K-cups every day, giving GMCR a solid recurring revenue stream.
GMCR took a tumble on 9/29 and 10/1 on an SEC inquiry. This inquiry turned out to be no-big-deal (the company restated earnings for the past four years and the stock jumped 9% that day). The stock fell again on 12/10 because it guided lower, more about this below.
Profits doubled last quarter as sales rose 68% – what’s so bad about that? Profit growth has averaged 91% the past four quarters — this is still a hot company.
Green Mountain’s fiscal year end is September 30th, and this $34 stock has a current fair value of $40. Once we get into the fall the fair value jumps to $58 — 70% higher than where the stock is now.
I was lucky to get GMCR in February 2009 at the beginning of this huge run it has made the past two years. At the time GMCR had the best numbers of any stock on my radar, and the stock was being held down because of the bear market in 2008.
