Is GMCR finally meeting up with reality?
Green Mountain Coffee Roasters Inc. (GMCR), the seller of Keurig single-pack coffee packets, fell as much as 11 percent after hedge-fund manager David Einhorn said the company should improve its disclosure.
The shares fell 9.8 percent to $83.07 at 12:23 p.m. in New York, after earlier dropping to $81.61.
Green Mountain has reduced transparency and the company needs to improve disclosure, Einhorn, president of Greenlight Capital Inc., said today at the Value Investing Congress in New York. He said that Green Mountain declined to speak to him while citing a quiet period. The company has a “looming patent issue” on its single-serve K-Cups, he said.
The company has a “litany of accounting questions,” Einhorn said, adding that its latest earnings were “perhaps too good to be true.”
Keep reading here: Green Mtn. Coffee Drops on Einhorn Comments – Bloomberg.
