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:
“Reptilian green the wrinkled throat,
Green as a bough of yew the beard;
He bent his head, and so I smote;”
—Yvor Winters (1900–1968)
“The ordinary man looking at a mountain is like an illiterate person confronted with a Greek manuscript.”
—Aleister Crowley (1875–1947)
“No living orator would convince a grocer that coffee should be sold without chicory; and no amount of eloquence will make an English lawyer think that loyalty to truth should come before loyalty to his client.”
—Anthony Trollope (1815–1882)