Is David Einhorn Making Footprints Today?
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Green Mountain Coffee (Nasdaq: GMCR) is surging today, while Apollo Group Inc. (Nasdaq: APOL) is sinking. So what gives?
According to the Wall Street rumor mill, David Einhorn is covering his short in single-cup coffee maker Green Mountain and initiating a new short position in University of Phoenix parent Apollo Group.
Mr. Einhorn first disclosed he was short Green Mountain on October 17, 2011 at the Value Investing Congress. Shares are down 66% since that time. Interestingly, the 2012 Value Investing Congress is scheduled for October 1st and 2nd, and Mr. Einhorn is again scheduled to speak. Did someone leak his next short idea?
Another interesting tidbit is that Deutsche Bank downgraded Apollo Education to Sell on Friday, with a downside $25 price target. The firm said "APOL's inability to offer scholarships, due to 90/10 ratio pressures, is hurting its ability to compete against a growing number of lower cost online providers. Without 90/10 relief, APOL will be challenged to grow; yet with 90/10 relief and lower tuition, APOL's profitability would likely significantly erode."
Shares of APOL are down 5.3 percent. While GMCR is up 11 percent.
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According to the Wall Street rumor mill, David Einhorn is covering his short in single-cup coffee maker Green Mountain and initiating a new short position in University of Phoenix parent Apollo Group.
Mr. Einhorn first disclosed he was short Green Mountain on October 17, 2011 at the Value Investing Congress. Shares are down 66% since that time. Interestingly, the 2012 Value Investing Congress is scheduled for October 1st and 2nd, and Mr. Einhorn is again scheduled to speak. Did someone leak his next short idea?
Another interesting tidbit is that Deutsche Bank downgraded Apollo Education to Sell on Friday, with a downside $25 price target. The firm said "APOL's inability to offer scholarships, due to 90/10 ratio pressures, is hurting its ability to compete against a growing number of lower cost online providers. Without 90/10 relief, APOL will be challenged to grow; yet with 90/10 relief and lower tuition, APOL's profitability would likely significantly erode."
Shares of APOL are down 5.3 percent. While GMCR is up 11 percent.
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