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:
“Men like my father cannot die. They are with me still real in memory as they were in flesh. Loving and beloved forever. How green was my valley then.”
—Philip Dunne (1908–1992)
“Fogs and clouds which conceal the overshadowing mountains lend the breadth of the plains to mountain vales. Even the small-featured country acquires some grandeur in stormy weather when clouds are seen drifting between the beholder and the neighboring hills.”
—Henry David Thoreau (1817–1862)
“It is extraordinary how the house and the simplest possessions of someone who has been left become so quickly sordid.... Even the stain on the coffee cup seems not coffee but the physical manifestation of one’s inner stain, the fatal blot that from the beginning had marked one for ultimate aloneness.”
—Coleman Dowell (1925–1985)