Peet's to Buy Diedrich Coffee

November 3, 2009

stock ratings

Stock	Grade
BNI Burlington Northern Santa Fe Corp.
DDRX Diedrich Coffee Inc.
GMCR Green Mountain Coffee Roasters Inc.
PEET Peet's Coffee & Tea Inc.

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Burlington Northern (BNI) isn't the only merger going on today. Diedrich Coffee (DDRX), which is one of my favorite coffee stocks, is being bought out by Peet's Coffee & Tea (PEET). Ironically, as I mentioned a few weeks ago, Peet's is my favorite brand of coffee, so this is a good deal for me.

Peet's is buying DDRX for $26 a share which is a 28% premium to yesterday's close so the shares are way up today. I think this is a very good deal for Peet's as well. That stock has been up by as much as 15% today to a new 52-week high.

Two weeks ago, I highlighted Green Mountain Coffee Roasters (GMCR) and Diedrich Coffee as being my favorite coffee stocks. Get ready for Green Mountain's earnings which will be coming out next Wednesday, November 11.

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