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:
“Chaucer is fresh and modern still, and no dust settles on his true passages. It lightens along the line, and we are reminded that flowers have bloomed, and birds sung, and hearts beaten in England. Before the earnest gaze of the reader, the rust and moss of time gradually drop off, and the original green life is revealed. He was a homely and domestic man, and did breathe quite as modern men do.”
—Henry David Thoreau (1817–1862)
“In the vale of restless mind
I sought in mountain and in mead,
Trusting a true love for to find.”
—Unknown. Quia Amore Langueo (l. 1–3)
“It’s just like when you’ve got some coffee that’s too black, which means it’s too strong. What do you do? You integrate it with cream, you make it weak. But if you pour too much cream in it, you won’t even know you ever had coffee. It used to be hot, it becomes cool. It used to be strong, it becomes weak. It used to wake you up, now it puts you to sleep.”
—Malcolm X (1925–1965)