If you’re like our pro traders, chances are you’ve spotted the price action in Green Mountain. Since June 22nd the stock has gained more than 20%.
Considering the stock was once a high flier, pros have started to wonder whether Green Mountain has gotten its mojo back.Has it?
Top Piper Jaffray analyst Nicole Miller Regan doesn’t think so. In a live interview on CNBC’s Fast Money Halftime report, she suggests the move could actually be deceiving. “There was no positive catalyst behind the recent run. It's still going to be a bumpy ride.”Regan's commentary suggests the gains might not be sustainable. "The risks (remain) channel shift and the CEO has announced his intention to retire so there's execution risk."It’s worth noting that she thinks if you’re nimble, Regan thinks there’s probably a little more upside because the stock has been “massively shorted” but if you’re a fundamental investor, she suggests looking elsewhere.
The better trade is long Starbucks . “They benefit from the same things but present a far smaller risk profile,” she says.
* You can find our conversation with Nicole Miller Regan about 3:30 into this video clip.
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