Whitney Tilson, T2 Partners explains why his company is short Green Mountain and discusses where he thinks the stock is headed. David Einhorn is also short.
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The Odey Special Situations Fund was down 0.27% for April, compared to its benchmark, the MSCI World USD Index, which was up 4.65%. For the first four months of the year, the fund is up 8.4%, while its benchmark returned 9.8%. Q1 2021 hedge fund letters, conferences and more The Odey Special Situations Fund is Read More
managing partner of t 2 partners. he was an dissipating the weakness. feeling great about it today.they have been as short as the 80s. down $20 from 50 to 30.we are not interested in covering a single share. they are playing out as we anticipated. it’s a combination of two things.we are affecting the company and it’s not the weather and the dog ate my homework excuses. it’s two things. rising competition and they haven’t come off patent yet. that is coming later this year. secondly, i can’t quite put my finger on it and prove it. there enough warning flags about they were stealing sales from future quarters. the last few quarters to make the numbers look extra good and juice the stock. what happens when you steal sales, the future quarters catch up with you and we are seeing the first of what will be a series of big misses.that was a major point in david einhorn’s presentation. shortly after is when you got short the stock? we were shorted for a couple of years and credit david for doing fabulous work and giving us extra angles and more ways to win on this. we took the position up after seeing his presentation. he identified other warning flags. how do you see the story ending? in the aftermarket session right now. what happens? when you have a company that you think has both fundamental competitive problems and accounting problems on top of it, i can’t prove it, but that’s the belief. there can be no bottom on these. this reminds me a lot of krispy kreme. history never repeats itself,but it rhymes. this is rhyming with krispy kreme. as long as the company will continue to miss quarters, it is putting guidance out for earnings, 5% lower than the previous guidance, it will be a lot lower in our opinion. the only question is it’s hard to short more of a stock and that’s what we are considering not covering. in terms of management, you look at a situation like this, you were short for the 80s and average cost? it doesn’t matter. what do do you from 30 and what are you trying to get to? full warnings to everybody. dangerous business. today at about a 3% position. the largest long position is a 16% position for a perspective. that’s where we have to think about how to size it. fair warning to everybody. keep your short positions a lotsmaller. green mountain hurt us lot and well over $100 less than a year ago. we took pain going up, but we were convinced we were right and took a couple of quarters to play out on the downside. thanks for coming by and we appreciate it. the value investing is coming up, correct? coming up after the berkshiremeeting and if i can grow in the on friday and they will be blowout and have the annual meeting on saturday. that’s the largest position by far. we’re mentioned david einhorn. green mountain and — he is short herbal life. that is going in his favor.meantimext, they are drilling down on why a top legal expert said the troubles may have only just begun and we are trading all the action. stay tuned. ay tuned.