They're Baaack... Bears Reload Green Mountain Coffee (GMCR) Shorts
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Shares of Green Mountain Coffee Roasters (Nasdaq: GMCR) are trading lower on Thursday as short sellers used a recent rally in the stock as an opportunity to reload short positions.
Yesterday Starbuck’s (Nasdaq: SBUX) CEO Howard Schultz made optimistic statements about the company’s prospects in single-serve, claiming its new Verismo coffeemaker will run over competition. If he is correct, Green Mountain would likely be one of the first competitors to get trampled. Talk is cheap, however, and yesterday's reaction in GMCR was relatively muted.
Starbucks aside, it was only a matter of time before Green Mountain bears came out of hibernation, led by notable investor David Einhorn. Their call to arms, as always, is GMCR valuation, its accounting and the expired K-cup patents.
Late in the session yesterday (3:39PM ET) a 1.61 million share block trade hit the tape. That's equal to about 24% of the normal daily volume in the stock.
Shares of Green Mountain Coffee last traded at $38.74, down 5.9%.
Yesterday Starbuck’s (Nasdaq: SBUX) CEO Howard Schultz made optimistic statements about the company’s prospects in single-serve, claiming its new Verismo coffeemaker will run over competition. If he is correct, Green Mountain would likely be one of the first competitors to get trampled. Talk is cheap, however, and yesterday's reaction in GMCR was relatively muted.
Starbucks aside, it was only a matter of time before Green Mountain bears came out of hibernation, led by notable investor David Einhorn. Their call to arms, as always, is GMCR valuation, its accounting and the expired K-cup patents.
Late in the session yesterday (3:39PM ET) a 1.61 million share block trade hit the tape. That's equal to about 24% of the normal daily volume in the stock.
Shares of Green Mountain Coffee last traded at $38.74, down 5.9%.
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