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:
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“... my mother ... piled up her hair and went out to teach in a one-room school, mountain children little and big alike. The first day, some fathers came along to see if she could whip their children, some who were older than she. She told the children that she did intend to whip them if they became unruly and refused to learn, and invited the fathers to stay if they liked and she’d be able to whip them too. Having been thus tried out, she was a great success with them after that.”
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“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.”
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