Wednesday, October 19, 2011

Shorting The Green

I don't short stocks, but every once in a while I am tempted to do so. For those of you value investors who do short, you may want to consider Green Mountain Coffee Roasters (GMCR) as a potential candidate. In a recent presentation, David Einhorn discusses some of the features that make this a great short candidate: a high price, a lack of free cash flow, some serious accounting questions, frequent capital raises (despite accounting profitability), and some interviews of former employees suggesting a lack of transparency. The slides can be found here.

Disclosure: No position

This article was written by Saj Karsan of Barel Karsan. If you enjoyed this article, please consider subscribing to the feed.

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