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:
“Of a green evening, clear and warm,
She bathed in her still garden, while
The red-eyed elders watching, felt
The basses of their beings throb
In witching chords, and their thin blood
Pulse pizzicati of Hosanna.”
—Wallace Stevens (1879–1955)
“The ordinary man looking at a mountain is like an illiterate person confronted with a Greek manuscript.”
—Aleister Crowley (1875–1947)
“I worked as a waitress till I was fired because I dumped a cup of hot coffee in the lap of a half-drunk guy who was pinching my butt.”
—Juli Loesch (b. c. 1953)