Green Mountain (GMCR) Shares Perk Up After 8 Days of Sideways Action
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While the broader market is notably weaker Wednesday, Green Mountain Coffee (Nasdaq: GMCR) shares are bucking the downside trend.
Wednesday's action is raising eyebrows as the battleground stock has been in a very tight trading range in the mid-$45s for eight straight trading sessions.
Green Mountain Coffee has been a target for short sellers like David Einhorn. The stock is down 44 percent since Einhorn presented his short case on October 17th at the Value Investing Congress. He cited poor transparency, a smaller market than bulls expect, expensive K-cups, negative free cash flow and accounting issues.
The bears were buoyed in November after the company missed Q4 sales and earnings targets, sending shares down another 39 percent.
As you can see, the bears have been proven correct short-term and have been pressing their bets. Smart shorts -- like maybe Einhorn himself -- may look to lock in some gains while things are quiet. Riding the stock down to zero is not realistic.
Shares of Green Mountain are up 0.2 percent to $45.40 Wednesday morning.
Wednesday's action is raising eyebrows as the battleground stock has been in a very tight trading range in the mid-$45s for eight straight trading sessions.
Green Mountain Coffee has been a target for short sellers like David Einhorn. The stock is down 44 percent since Einhorn presented his short case on October 17th at the Value Investing Congress. He cited poor transparency, a smaller market than bulls expect, expensive K-cups, negative free cash flow and accounting issues.
The bears were buoyed in November after the company missed Q4 sales and earnings targets, sending shares down another 39 percent.
As you can see, the bears have been proven correct short-term and have been pressing their bets. Smart shorts -- like maybe Einhorn himself -- may look to lock in some gains while things are quiet. Riding the stock down to zero is not realistic.
Shares of Green Mountain are up 0.2 percent to $45.40 Wednesday morning.
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