THE ANALYSIS: Jagdale believes that there are will be limited number of single-serve coffee products. Through conversations with numerous companies in the industry, he found that some manufacturing and quality issues point toward a shortage of product.
So some retailers are reconsidering Green Mountain products as an alternative to non-licensed manufacturers. Additionally he believes that coffee prices are going to be a more significant tail wind for Green Mountain in 2013.
Jagdale said he feels more confident about the company's ability to meet or beat its 2013 guidance, given the unlikely price war and lower prices.
SHARE ACTION: Green Mountain's shares were up 7.1 percent in afternoon trading at $44.01. The stock is slowly recovering after a wild ride. It hit an all-time high of $107.99 in the fall of 2011 but was down to $17.49 by last summer. Since then it has gradually climbed, as investors regained hope that the coffee company still has a viable future.