At the Value Investing Congress in New York City this morning, renowned
hedge fund manager and short-seller David Einhorn slammed Vermont-based
Green Mountain Coffee Roasters (Nasdaq: GMCR). Within
minutes of his +100 slide PowerPoint presentation, shares of the
single-serve coffee maker were sinking, and at mid-day the stock was down
roughly 10 percent.
During a 45-minute presentation Einhorn
highlighted his many concerns, including:
- Green Mountain Coffee continues to be
changing and reducing its quarterly financial disclosures, making it
increasingly difficult for analysts to understand the performance of the
- The inquiry from the Securities and
Exchange Commission (SEC) remains outstanding and is a risk to the
company and the stock.
- Internal accounting controls are
insufficient for a company of this size.
- Bullish investors and analysts following
the company overstate the market potential for Green Mountain Coffee
since the low-hanging customers have already purchased.
- Sales of K-Cups per Keurig machine