Comments on: These 3 Retailers Are Ripe For Shorting http://offshoreinn.com/investing/these-3-retailers-are-ripe-for-shorting/ Offshore Inn for International Real Estate, Overseas Jobs, Asset Protection, Expatriate Resources and Overseas Retirement Tue, 16 Mar 2010 09:18:35 +0000 http://wordpress.org/?v=2.6.3 By: rich w http://offshoreinn.com/investing/these-3-retailers-are-ripe-for-shorting/#comment-1008 rich w Sat, 17 Jan 2009 01:22:31 +0000 http://www.contrarianprofits.com/?p=11636#comment-1008 There's only one company that fits your mystery description. And you would be wrong to short it. If, as you suggest, consumers are going to cut back on going out and ordering $4 lattes, it only follows that they'll be making "specialty coffee" at home and/or in the office. Guess who's the up-and-coming leader in single cup home brew systems? There are a lot of bullets in that company's gun - much more diversified in their turf than SBUX. Even if the big burger accounts don't pan out fully. Once you've had decent coffee, you don't go back to swill. Once you find a coffee you can drink without adding cream, you don't go back to dairy. But you still need caffeine. Maybe it trades flat for awhile, but it's not a good short candidate. There’s only one company that fits your mystery description. And you would be wrong to short it. If, as you suggest, consumers are going to cut back on going out and ordering $4 lattes, it only follows that they’ll be making “specialty coffee” at home and/or in the office. Guess who’s the up-and-coming leader in single cup home brew systems? There are a lot of bullets in that company’s gun - much more diversified in their turf than SBUX. Even if the big burger accounts don’t pan out fully.

Once you’ve had decent coffee, you don’t go back to swill. Once you find a coffee you can drink without adding cream, you don’t go back to dairy. But you still need caffeine. Maybe it trades flat for awhile, but it’s not a good short candidate.

]]>