Einhorn Comments Send Green Mtn Shares Down

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.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of