Monday, 26 January 2015
Last updated 2 days ago
Oct 18 2011 | 8:24am ET
David Einhorn of Greenlight Capital sent shares of Green Mountain Coffee Roasters’ tumbling on Monday when he criticized it for a lack of transparency and for capital spending that has outpaced the growth of its business.
Speaking during the Value Investing Congress in New York, Einhorn said the company has a “looming patent issue” on its single-serve K cups, a “litany of accounting questions,” and recent earnings that are “perhaps too good to be true,” reports Bloomberg.
Einhorn, whose Greenlight Capital is known for its activism, also said the company needed to improve its disclosure, revealing that Green Mountain had refused to speak to him while citing a quiet period.
Green Mountain shares fell 9.8% to $83.07 at 12:23 p.m. in New York, after earlier dropping to $81.61. But that said, shares are still up 137% since the start of the year.
Green Mountain's per-share earnings have been in the triple digits in the last two quarters and analyts expect similar growth in Q4.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…