Bear Couldn't Halt Green Mountain.(THE SMART INVESTOR)(WINNING WAYS)

Byline: KEN HOOVER

Investing in a bear market is a dangerous game. Most stocks tank along with the general market. But occasionally, the skillful investor can score a quick winner, which wakes up a portfolio like a morning cup of java.

Green Mountain Coffee was a case in point when it emerged from a base Oct. 10, 2000 1. The major indexes were in a downtrend. But the tip-off the stock was ready to rumble was the well-proportioned cup-with-handle base it carved out over 16 weeks.

The company's earnings should also have attracted your notice. Earnings were up 156%, 147%, 70% and 64% the past four quarters. Sales were accelerating: 15%, 23%, 26% and 31%. The Earnings Per Share Rating was 92. The Relative Price Strength Rating was 93. The relative strength line preceded the stock into new high ground.

The Waterbury, Vt., company sells gourmet coffee to corporate lunchrooms and grocery stores.

Only nine mutual funds owned it. Among those were two outstanding growth funds. Bjurman Micro-Cap had just bought it. Bridgeway Ultra Small Company had just added shares.

But there was serious cause for pause. The company was tiny. The average daily trading volume was a thin 8,200 shares. The volume on the breakout was only 24,000 shares. A thinly traded stock can crater in a hurry. Even a 100-share trade can jerk the price up or down as if Warren Buffett were behind it.