The following is from my friend who has a short position in GMCR:
Rather than bore you with yet another (recycled) Green Mountain Coffee Roasters short thesis of David Einhorn‘s original GAAP-uccino, the attached presentation, “GAAP-ucino Version 1.5″, details two fresh, underappreciated reasons why GMCR is a strong sell, with an initial price target of $15.00/ share (currently trading for around $53.00/share).
Note that this report is 39 pages long, and is part I of III. The complete report will likely be at least 110 pages long. Please distribute and discuss freely.
…………………………………………………………….
These experts’ (crime fighters) many concerns sound as if they come straight out of a Harvard Business School
Case Study:
- Accounting/Fraud Issues: Overstating Revenue,Understating Expenses, Capitalizing Expenses, Channel Stuffing, etc. all to meet Wall Street Estimates
- Improper Conduct/Violation of Laws: Violations of Regulation FD, Insider Trading, Securities Fraud, Peculiar relationship with quasi-captive distributor, etc.
- Fundamental Problems: Zero cash flow since Keurig Acquisition, 100% dependent on external capital, Abysmal earnings quality, reliance on acquisitions to meet/beat expectations, Reduced/changing transparency of operating metrics, Patent expiration, etc.
GAAP-Uccino 1.5 – Part I of III – 2012 02 01
Check out our Premium section. 14 day trial is only $1!
You aren’t subscribed?
If you enjoyed this post, you can subscribe for our free content via RSS Feed, Facebook, Twitter You can unsubscribe at any time, and your information will not be sold to any third parties.
More on this topic
(What's this?)
Green Mountain Coffee Roasters (NASDAQ: GMCR) May Be Red Hot but It's Not a 'Buy'
(Money Morning, 10/17/11)
GAAP-ucino Version 1.5 – GMCR IIa of III
(ValueWalk.com, 2/16/12)
Related posts:
- Discrepancies in Green Mountain Coffee Roasters’ Financial Reports
- GMCR: Whitney Tilson’s Cerebrates his Victory Lap
- Whitney Tilson ‘Why We’re Long Netflix and Short Green Mountain Coffee Roasters’
- Exclusive: An inside look at David Einhorn’s “big short”
- David Einhorn is Short GMCR
- Green Mountain’s Precipitous Price Drop: Wake-Up Call For Coffee Stock Investors?
- How Do The Best Performing Stocks Of The Decade Compare To Predictions In 2000?
