This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Investors who can find the diamonds in the rough stand to profit handsomely," says small cap growth stock expert and money manager Jim Oberweis, Jr.
In his The Oberweis Report, he suggests Green Mountain Coffee Roasters (NASDAQ: GMCR) is one stock that fits the bill. As his top pick for 2009, he looks to the maker of specialty coffees and single-cup home brewing systems.
"There is no question that any company whose growth depends on selling goods to the U.S. consumer, especially non-essential goods, would seem risky at the present moment. But stock prices for most retail companies are already down in the dumps and reflect significantly reduced expectations.
"We've been looking for growth companies that won't be as badly affected as many folks believe. Green Mountain Coffee Roasters is one stock that fits the bill.
"While their coffee division has shown reasonable growth, sales of their Keurig brand single-cup coffee systems have been quite astounding.
"Similar to Gillette's model of giving the razor away and making a killing on the blades, Keurig sells the coffee system roughly at cost but earns high margins by selling the patented single-serving coffee packets that work with the system, known as K-cups.
"Given very favorable coffee systems sales this fall and hopefully this Christmas, we expect much higher K-cup sales to follow, probably ramping in the first half of 2009. Higher K-cup sales should yield higher-than-expected profits.
"In their latest quarter sales grew 45% and earnings doubled from the prior year. Even given the very weak economic environment, management expects to grow sales 40-45% in their next fiscal year.
"Companies exhibiting such resilient growth in this environment should outperform their peers. Green Mountain Coffee is no exception."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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