From The Reformed Broker:
The bombshell presentation on the Green Mountain Coffee Roasters (GMCR) short thesis by David Einhorn has been floating around all week, I just got around to going through it last night.
Full disclosure: I have zero long or short position here but I do use the company's product every day at home. A lot of people do which is why the stock has been such a homerun. Unfortunately, management may have pushed the envelope to keep the "growth story" alive.
Einhorn's bear case is:
1. Accounting is shady (unaccounted for revenue, especially in the last quarter - auditors are distancing themselves and the SEC has an open investigation ongoing)
2. Demand/market penetration is...
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More on short-selling:
Four reasons to short gold now
This has NOT been a short covering rally... It's actually much worse
Must-read: Master short-seller Jim Chanos' presentation from yesterday's Value Investing Congress