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:
“Be the green grass above me,
With showers and dewdrops wet;
And if thou wilt, remember,
And if thou wilt, forget.”
—Christina Georgina Rossetti (1830–1894)
“I thought of Chatterton, the marvellous boy,
The sleepless soul that perished in his pride;
Of him who walked in glory and in joy
Following his plough, along the mountain side:
By our own spirits are we deified:
We poets in our youth begin in gladness;
But thereof come in the end despondency and madness.”
—William Wordsworth (1770–1850)
“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)