GreenMountainCoffee

(GMCR)

www.GreenMountainCoffee.com

Green Mountain Coffee has been recognized for the past six years as one of Forbes Magazine's 200 Best Small Companies. They are one of the largest and most experienced dealers in Fair Trade Coffee. Fair Trade is when the middle man is cut out and the farmers receive the bulk of the price. Currently, the "middle man" takes most of the price, and distributes very little to the farmer, causing the farmer to just live above subsistence.

EPS 1.13

qrtly earnings growth 13%

csh 5.66 M

debt 8.78 m

book value per share 7.6 m

free cash flow -4.53 m

32% INSIDERS

7.42 MILLION SHARES Outstanding

• above/ over the 50 and 200 day moving averages

• stock holders get a 10% discount on non sale items

• $8.69 for 12 oz fair trade, organic, roasted whole bean

RFID Zebra (ZBRA)

or Where is it?

As I was looking into what could be a future growth market, I remebered RFID. A radio braodcast barcode that helps track items from the factory through shipping to the shelf. Lost/ Misplaceitems account for huge inventory cost. The armed forces and Wal-Mart are both into the technology. Grocery stores are also interested in it because it helps keep inventory at controllable levels and instead of the store ordering more inventory, the vendor knows when stocked items are low. When the vendor knows, the factory knows..an so on.

Enter Zebra... Zebra makes printable RFID ink so that bar codes can send info efficiently from ....printable RFID tags....like Barcodes now in use. Of course many companies that are large mega caps are into it as well like Unova (UNA) and seimens.

Zebra's competitive advantage is that it only make the tags, but works with established database systems (SAP/Oracle/ Microsoft) to ensure a smoother transition. They make a profit, have operated over 20 years from California, and are growing.

From the Zebra.com Web site:
"Radio frequency identification (RFID) printers and encoders help you implement instant, measurable improvements in operating efficiency, accuracy, and supply chain visibility. You can digitally encode error-free data in an RFID tag or smart label, then wirelessly transmit that data to an RFID reader--even in harsh environments."

Social Investing Funds vs Warren Buffet

What do environmental and social funds hold....after a little web soul searching, I was a little surprised to find some companies that are questionable.....

Now I know that you have to make a buck, but the whole point is shifting money to businesses you would care about, right?


This article describes the situation...

Social funds:
Domini Social Funds symbol (Symbol: DSEFX) currently about $28 and does has been for around two years...About 1.2 billion in assets. The Domini 400 Social index includes DuPont, 3M, PG&E, and XTO Energy (10-05-2005). Among other well alternative energy companies.

Here's a list I found of what Berhire Hathaway owned in 2002 for comparison:erkshire Hathaway had, as of 2002, holdings in the following companies.
COMPANIES BERKSHIRE HATHAWAY OWNS
GEICO - Primarily a motor insurance company, reputedly number 6 in America which provided earnings to Berkshire in 2002 of 271 million dollars. (Read our history of GEICO)
General Re - One of the largest reinsurers in the world, which contributed negatively to Berkshire’s earnings in 2002.
Shaw Industries - Makes tufted broadloom carpet. A good contributor to Berkshire in 2002 to the tune of 258 million dollars.
Nebraska Furniture Mart - This originally family owned company’s store in Omaha is the largest of its kind in the USA, and probably the world. Its new store in Kansas City will, with 450,000 square feet, be Number 2. The story of this company is a Warren Buffet classic and can be found here  Berkshire also owns R.C. Willey Home Furnishings, Star Furniture, and Jordan’s Furniture.
Borsheim’s Jewelry - This is another classic Buffett company. Berkshire also owns Helzberg Diamond Shops.
Benjamin Moore - This company makes and sells architectural and industrial coatings.
Johns Manville - This company makes and sells insulation and building products.
Acme Building Brands - Makes face brick and concrete masonry products.
MiTek Inc - A manufacturer of steel connector products and engineering software.
Fruit of the Loom - This apparel company has about one third of the US market for men and boy’s underwear.
Garan - This company makes and distributes children’s wear under the brand name Garanimals.
Fechheimer
H.H. Brown - A leading manufacturer and seller of shoes
Justin Brands - Another shoe maker which has been improving its margins over the years.
Dexter - This shoe maker has been turned around from a loser to a winner.
Scott Fetzer - This company makes commercial and industrial products under the brand names of Kirby and Campbell Hausfeld brand names and put 83 million dollars into Berkshire’s coffers in 2002.
FlightSafety International - Provides training for aircraft and ship operators.
NetJets - NetJets provides fractional ownership programs for general aviation aircraft and is the market leader. The flight services sector of Berkshire added 133 million dollars in 2002.
The Buffalo News
See’s Candies - This famous company will sell you candy at its stores or over the Internet.
Albecca - A company that designs, makes and sells high-quality picture framing products under the name Larson-Juhl.
CTB International - A leading manufacturer of equipment for the livestock and agricultural industries
International Dairy Queen - A well known franchise, with over 6000 outlets.
The Pampered Chef - A recent acquisition and reputedly the largest direct seller of house ware products in America. This company sells a lot of its products through home parties a la Tupperware.
Mid American Energy Holdings - This company Holds gaslines in Wyoming and the Mid-West of the USA.
SUBSTANTIAL HOLDINGS IN OTHER COMPANIES
As at the date of the 2002 Annual General Meeting, Berkshire Hathaway had substantial holdings in the following companies.
• American Express Company
• The Coca-Cola Company
• The Gillette Company
• H&R Block, Inc
• M&T Bank
• Moody’s Corporation
• The Washington Post Company
• Wells Fargo & Company

Conclusion? Bershire Hathaway may be an SRI Fund....

Columbia Sportswear

First news observations: Google and Microsoft are fighting it out hard. They are both too expensive for me (valuation wise) but the fight is interesting. Google may buy some AOL. Microsoft has been trying to get into AOL too. That's about as direct as you can get. Also, Microsoft is teaming with Yahoo? Looks like Google isn't doing their own thing so much as playing defense.

Also, now that Michael Eisner has retires, Apple and Disney like each other. Also, if prices in October for stocks drop, I think ( a big I think here) stocks will be more fairly valued and a good time to buy the bigger issues.

Back to Columbia:

It's getting to be fall, and winter clothing should do well this year. Although I remain a supporter of Burton (private) and I have mentioned The North Face is part of Greensboro conglomerate VF corporation (see previous posts)...Columbia is well represented in the malls and other highly visible sporting goods stores.

COLM

Yahoo lists their competitors as Nike and Timberland. I don't think so. Not the same at all. However, Similarities are:
Columbia makes sports wear for many big universities like UNC OSU Michigan Washington, ect like Nike.... They also make boots...but they are beyond Timberlands. They also make adventure gear like tents, packs, Hunting camo-s, wet bags for Kayaking, and snowboarding gear....and were one of the first to use GoreTex. On a personal note, I still use a Columbia jacket from ten years ago as a back-up.

Columbia is sold world wide and has room to grow overseas. They could get to a sales level near Nike. The two companies have sililar growth and margins and EPS. Net income is very different because Nike is in the billions. Growth is twice that of Timberland (TBL) although the other numbers are quite the same (P/E both around 13.5--Nike=~16)

Smartmoney's value checker puts COLM's estimated value at $60.....however there was a large valume selloff in May dropping the price from $55.

Opinion: The tenacious Mother Son team is likely to continue the small family feel while going big.

Will gm use bankruptcy to cut its pension load?...

or...gm is Junk twice

I am sick of US companies failing to make a good business, then pawning their ugliness off on the taxpayer...Can't they just compete?

"I'd rather push a Chevy than drive a Ford"
That's the redneck axiom in my part of the south....
That's also the thinking that let's GM build whatever %%$# they can... Instead of beating the ^&^$ out of the competition ...like normal businesses strive to do.

GM likes to build &^&^ and expects to sell it....with high value loans.... Hence margins ...and the unions ask for a huge piece of those margins...Fair enough. Maybe it's fair to use the court to renig on pensions so that the corps can take all those retirement millions saved up.

GM has said they are building hybrid and fuel cell cars, but but but but but,
I'll believe it when I see it. Skeptical is an understatement.

It seems like gm is doing everything possible to not make nice technology into current production. They have their circus at auto shows... and they have teams of brilliant engineers, but what is there to show for it on the dealer lot? Not Xhit.

Can you list all the companies that claim bankruptcy to end pension plans?
A bit about the maneuver:

pension theft

GM takes back health plan via Findlaw.com
Delphi raises exec payouts after Bankruptcy
ERISA the law from Findlaw.com
Pension Termination and ERISA at FIndlaw.com
wikipedia Pension benefit guaranty Corp

"Bloomberg News Service
Aug. 24, 2004

A $350 billion pension shortfall among U.S. companies may force the federal agency that insures retirement plans to seek a taxpayer bailout similar to the one during the savings and loan crisis, according to the Cato Institute, a Washington-based policy research group.

The federal agency, the Pension Benefit Guaranty Corp. had a record deficit of $11.2 billion last year after taking over plans for 152 companies such as Bethlehem Steel Corp. and US Airways Group Inc. Without changes to funding and premium rules, the PBGC's deficit is likely to swell to $18 billion in the next 10 years, and may reach more than $50 billion, said Richard A. Ippolito, chief economist at Cato.

"If exposures create claims that reach catastrophic levels, taxpayers will be called upon to provide a bailout," Ippolito said.

Stock price declines and low interest rates have eroded the value of pension plans. Groups such as the Pension Rights Center, a Washington-based workers' advocacy group, have dismissed the likelihood of a bailout, saying the PBGC is well funded over the long term.

The collapse of savings and loans in the 1980s and early 1990s costs taxpayers about $124 billion and the thrift industry another $29 billion, according to the Federal Deposit Insurance Corp.

-----------------
United Airlines parent, UAL Corp., said last week that it probably will terminate and replace all its pension plans. United, the second-biggest U.S. air carrier, plans to skip about $575 million of pension contributions this year to help it come out of bankruptcy without a government-backed loan.

The PBGC is funded through insurance premiums collected from employers that sponsor defined-benefit plans, returns on investments and the assets of pension plans that it takes over. Underfunding can be controlled by making the PBGC a private insurance program that sets premiums based on the risk that plan sponsors add to the program, Ippolito said.

"Eliminate the loopholes that permit sponsors of underfunded plans to evade the variable rate premium and require sponsors to calculate market value underfunding," said Ippolito. Such reforms would increase revenue to the PBGC and reduce underfunding, he said.

The PBGC was created by Congress in 1974 to guarantee pension benefits, and is run by a board that includes the U.S. secretaries of Labor, Treasury and Commerce. Since its creation, the airline and steel industries have accounted for more than 70 percent of the claims against the program while representing less than 5 percent of insured participants, the PBGC said." (end article)

Toyota is buying up all thebattery technology at Panasonic .....Should anyone care? ....horsepower or efficiency? Does it have to be so cut and dry?

Today's news about GM selling part of their Fujitsu holdings (Suburu maker) ... and that Toyota is the buyer. Bank of America downgraded gm to a sell. FUJI goes back to Toyota

Bankruptcy is good for gm and Delphi's board, but not for its employees. I believe they are aiming to go into bankruptcy as a tool to decrease the amount of pension liability they have ...this will force the US taxpayer to pay the union pensions.

wow.... I got out of bed on the wrong side today eh?

LG makes fuel cell Laptop batteries: 10+ hrs

BP

BP ... Can an environmentally concerned investor buy a huge oil company? Sure---If BP is going to make money anyway, they might as well pay me (an investor) part of their profits. BP's dividend is good ( 2.14 and possibly 3 next year) They are growing...... net income (profits) grew at about 6%, even though growth estimates for revenues are about 11%... profits are 6% on $316 billion... wow, that should be nice to take part in. Enough said about the solid business....

...It's the future I'm worried about

Doubt CO2's effect on the environment? BP doesn't (unlike some others).

They have a whole web site dedicated to the future sustainability of energy and the environment .

1) decarbonized fuels ....or turning Natural Gas or Oil into hydrogen !!! .... H2 future...one day...one day....

2) BP Solar: They sell at Home Depot complete systems .... WholeFoods (WFMI) BP Solar CASE STUDY



Solar Costs are initially higher than costs can be recovered in five years.... are they woth it? Step in the Government to help the market have a little forsight and planning...

Tax benifit in your area:
National database for renewable tax incentives:
http://www.dsireusa.org/index.cfm

nc state tax credit site


• A maximum of $3,500 for residential active space heating, combined active space and domestic hot water systems, and passive space heating;  
• A maximum of $1,400 for residential solar water heating systems, including solar pool heating systems;  
• A maximum of $10,500 for photovoltaic (solar electric), wind, or other renewable energy systems for residential use;  
• A maximum of $250,000 (increasing to $2,500,000 for 2006 through 2010) for all solar, wind, hydro and biomass applications on commercial and industrial facilities, including photovoltaic, daylighting, solar water and space heating technologies.
Renewable energy equipment costs eligible for the tax credit include the cost of the equipment and associated design, construction costs and installation costs less any discounts, rebates, advertising, installation assistance credits, name referral allowances or other similar reduction

Ida Tech

(IDA)

I have no idea why I think this... but Ida Tech is a part of an Idaho power company, IdaCorp (IDA) , that may be into fuel cells.... and could have Bill Gates as an investor. I have found many links that say Bill Gates bought 5% stake in Avista Labs....

and recent news on Hoku suggests idacorp' s know how has something to do with Hoku's recent upgrades. Personal note: HOKU is pure spec and unless you are a gambling man...

The safer Fuelcell investor:
Idacorp provides electric power and has a dividend you could count on...plus the stock has been around $30 for five years....dividends (+/- .30 ) provide a positive yeild compared to other fuel cell companies...
I guess if you watched Jim Cramer on Mad Money (CNBC) a week ago, when HOKU was $8 and Cramer said not to buy over the closing price that day, the recent $12 is a respectable gain.......but long term?

From Web site
TheStreet.com - RealMoney.com
Can't Use Valuation on Hoku
9/20/2005 11:30 AM EDT
By James Cramer
These only measure for the beauty of these under-$10 monsters is in the eye of the last beholder.