Green Mountain Coffee Roasters
Speaking at the Value Investing Congress in New York City on October 17, 2011, Einhorn publicly announced his short position in Green Mountain Coffee Roasters stock. Prior to that date, the company's share price had increased more than tenfold since March of 2009, the third-biggest gain in the Standard & Poor's Midcap 400 Index. In his presentation Einhorn opined that the market for Green Mountain's new Keurig single-cup coffee brewer was "limited," and that the K-Cup coffee pods for the machine presented a "looming patent issue" for the company. He also said that Green Mountain had a "litany of accounting questions." Following Einhorn's speech Green Mountain's share price fell by 10 percent, closing that day at $82.50.
A few weeks later on November 9, 2011, Green Mountain's quarterly report missed analyst expectations and its stock price plunged to $43.71. The company's CEO Lawrence J. Blanford cited a "number of factors including changes in wholesale customer ordering patterns in our grocery and club channels" for the underperformance of the company.
Read more about this topic: David Einhorn (hedge Fund Manager)
Famous quotes containing the words green, mountain and/or coffee:
“The country is holy: O bide in that country kind,
Know the green good,
Under the prayer wheeling moon in the rosy wood
Be shielded by chant and flower and gay may you
Lie in grace.”
—Dylan Thomas (1914–1953)
“I’ve been up the mountain and I had a choice. Should I come down? So I came down. God said, “Okay, you’ve been up on the mountain, now you go down. You’re on your own, free. Check in later, but now you’re on your own.””
—Bob Dylan [Robert Allen Zimmerman] (b. 1941)
“Mrs. Small went to the kitchen for her pocketbook
And came back to the living room with a peculiar look
And the coffee pot.
Pocketbook. Pot.
Pot. Pocketbook.”
—Gwendolyn Brooks (b. 1917)