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David Einhorn Has Crushed Green Mountain Roasters (GMCR)

October 26, 2011 | About:

A lot of former momentum high fliers have been trashed of late - Green Mountain Roasters (NASDAQ:GMCR) is definitely near the head of the list. The stock was actually holding up quite well during the majority of the swoon in the market late summer, early fall - but a short selling presentation by respected hedge fund maven David Einhorn a week and a half ago, crushed the stock. It's lost about 40% of its value in that time.

Here is the report if you are interested

David Einhorn's presentation on Green Mountain

I thought earnings were tonight and this potentially set up a very interesting risk reward as the stock is down over 40% in the past two weeks, but it appears the original date (which many services had listed as tonight) has changed. I just called investor relations to check, and the recording says as much. Expectations are extremely low - obviously.


On the flip side, there are still massive gaps in the long term chart that eventually should be filled - one down at $45 and another at (gulp) low $30s. But usually things don't move in a straight line. We'll see how this one plays out. But the 'momo' group has taken some serious hits this week.

No position

About the author:

Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

Rating: 2.6/5 (5 votes)


Paulwitt - 6 years ago    Report SPAM
The proper play in that case is to load up on puts!

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