David Einhorn just announced that he’s negative on Green Mountain at the Value Investing conference in New York, according to CNBC.
Green Mountain is the maker of K-Cups and a popular coffee brand.
The stock immediately dipped after his announcement. It’s down nearly 11% today, and most of the drop happened after Einhorn’s announcement.
This is not surprising as GMCR has been a really popular stock to short, and now a big-name investor has added his name to the list.
Who’s long? John Thaler’s JAT Capital, RenTech, Two Sigma, DE Shaw, Vinik, and Coatue were as of June 30th, for example. (Of course they might have hedges or shorts on as well. Those aren’t reported in 13f filings to the SEC.)
His comments were that the market for its Keurig single-cup brewers is “limited” and the company faces patent expirations, as well as a “litany of accounting questions,” according to Bloomberg.
“I believe the available market is smaller than the bulls believe it to be and that Green Mountain has already penetrated a good chunk of it,” he said.