CNN, MSNBC and other cable and mainstream media have recently reported this rogue analyst’s completely false reworking Green Mountain’s company report math. Credible analysts have debunked Einhorn and explained the correct report and statistics.
Who is responsible for overseeing stock analysts to enforce business ethics for responsible public distribution of correct facts?
Isn’t it illegal to be an insider holding large blocks of stock then spreading negative rumors to assault good returns and growth to then benefit from price drops by selling short? Isn’t Einhorn a notorious short seller who lines his own pockets by declaring war on a company?
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Sun Trust analysts have gone over Einhorn’s power point presentation with a fine tooth comb and say he’s wrong in two areas that threw off his conclusions. He struck out on this one. Oh and by the way he has large short holdings and the stock just kept posting higher earnings and gains which hurt his short positions. Isn’t it a little too convenient that he has a big vested interest in crashing the success party? Einhorn’s not the first hedge fund manager to get too cocky and blow it big time.
I use K cups at home after learning about them at my attorney’s office. They’re fantastic! Each person can choose their own flavor and there’s no mess. Of course it’s more expensive to package them than dipping into the same boring bag of coffee at home.
And NO the market isn’t saturated at all. Costco and Staples just started carrying them, you can’t get them in supermarkets and I order online with an automatic delivery every 2 months and am increasing. For summer they had the best flavored iced teas brewed hot over a glass of ice! Always fresh, no mess, and we love the variety! They even have de-caf and new flavors every month.
The market’s not saturated until there’s a K cup machine in every location you see a pot of stale coffee that’s sat there all day.
Einhorn is an extremely experienced and respected hedge fund manager.
The market clearly believes that he is credible based on the reaction of GMCR stock price to his analysis. Based on market reaction, no one has debunked anything he said.
As an investor, I want to hear both positive and negative opinions, not just chearleading.
David Einhorn isn’t spreading rumors. He has launched a very well-founded campaign to present the bear story on GMCR, one that I happen to believe. Read, for example, http://www.marketfolly.com/2011/10/david-einhorn-short-green-mountain.html
and tell me what constitutes a "rumor" as opposed to well-founded criticism. There are indeed credible analysts who like GMCR, but even the respected analysts agree with many of Einhorn’s point about inadequate disclosure from GMCR.
Besides not knowing who David Einhorn is, you don’t seem to know how shorting stocks work. Your comment about "an insider holding large blocks of stock " is laughable. Einhorn is surely not an insider; he is a hedge fund manager. You dont "hold large blocks of stock" to short them, you borrow large blocks of stock and sell them.
Anyway, I think your assault on Einhorn is pathetic and that you don’t have any idea what you are talking about, The dialectic between bears and bulls is very healthy for the market and healthy for the entir process of allocating capital. Einhorn just believes that the case for allocating lots of capital to GMCR is weaker than the market does and he is expresssing why.
Anyway, why don’t you address some of Einhorn’s criticisms. In particular, a cup of GMCR coffee costs about 60 cents to make at home compared to 10 cents for a decent cup of coffee from bagged coffee. Why should we not believe that heading into a recession GMCR has saturated the market and that they have limited growth oppportunities? GMCR won’t disclose numbers to clarify this point and have steadfastly resisted addressing it. Why shouldn’t we believe it’s true?
Edit: BTW calling Einhorn a "rogue analyst" is just silly. He is a highly respected hedge fund manager. His biggest enemies at Allied, Steve Ballmer, the entire Board of GMCR would all agree to that. It’s pretty clear that you don’t know what you are talking about.
Edit 2: I wish that I had Jerry’s level of patience with idiots. Maybe jerry could teach me that…