Topic: How To Invest

Pat: Thank you for all the great advice. I’d appreciate your opinion on Green Mountain Coffee Roasters. Thank you.

Article Excerpt

Green Mountain Coffee Roasters Inc., $23.99, symbol GMCR on Nasdaq (Shares outstanding: 155.5 million; Market cap: $3.7 billion; www.gmcr.com), is a leading maker of specialty coffees. Vermont-based Green Mountain roasts about 100 varieties of coffee, which it sells to wholesale customers such as supermarkets, convenience stores, resorts and coffee-delivery services. The company also sells its coffees and related accessories online. Green Mountain sets itself apart from the competition by emphasizing fair trade and organic products. About 24% of its coffee comes from fair trade sources. Fair trade goods are certified as meeting certain principles, such as the payment of reasonable prices, safe working conditions and economic sustainability. Green Mountain, for example, pays a minimum price—which is often higher than market rates—for its fair trade-certified coffee beans to help improve coffee farmers’ living standards. The company also gives at least 5% of its annual pre-tax profits to what it sees as socially responsible initiatives. In June 2006, Green Mountain paid $160 million for Keurig, one…