Hedge fund manager David Einhorn said Green Mountain Coffee Roasters Inc.’s (NASDAQ:GMCR) stock is “too frothy” and criticized the company for “poor transparency” while speaking at the 7th Annual New York Value Investing Congress. After his speech Green Mountain shares fell 10% closing at $82.50.
In the past year, Green Mountain (NASDAQ:GMCR) shares have soared 175% due to the increasing sales of its Keurig brewer and single-serve K-cups. Along with that, they are on the rise in sales of single-service coffee after partnering with Starbucks (NASDAQ:SBUX) and Dunkin’ Brands Group Inc (NASDAQ:DNKN). Green Mountain’s K-cup sales produced triple third-quarter earnings and double third quarter revenues. The company’s shares topped at $115.98 a share on Sept. 20, but have fallen 26% since then.
The company’s accounting policies are also under investigation by Securities and Exchange Commission, citing concerns with “certain revenue recognition practices and the company’s relationship with one of its fulfillment vendors.” The company said it “continues to cooperate fully with the SEC staff’s inquiry,” according to an SEC filing. Here’s how these coffee stocks have been performing:
- Green Mountain Coffee Roasters (NASDAQ:GMCR): The shares recently traded at $81.95, down $0.50, or 0.61% on the day. The shares have traded in the 52-week range of $29.20 to $115.98 and its market capitalization is $12.55 billion. About the company: Green Mountain Coffee Roasters, Inc. roasts Arabica coffees and offers various coffee selections. The Company’s products include single-origin, estate, certified organic, Fair Trade, signature blends, and flavored coffees sold under the Green Mountain Coffee Roasters brand. Green Mountain serves offices, supermarkets, and convenience stores, and operates a direct mail business.
- Starbucks (NASDAQ:SBUX): The shares recently traded at $41.71, up $0.55, or 1.34%, on the day. The shares have traded in a 52-week range of $26.84 to $42.22 and its market capitalization is $31.12 billion. About the company: Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web. Starbucks also produces and sells bottled coffee drinks and a line of ice creams.
- Dunkin Brands (NASDAQ:DNKN): The shares recently traded at $27.42, down $0.08, or 0.47%, on the day. The shares have traded in a 52-week range of $24.97 to $31.94 and its market capitalization is $3.30 billion. About the company: The owner of Dunkin’ Donuts Baskin-Robbins has more than 14,800 points of distribution in 44 countries, and approximately 120 years of combined history.
(Note: Selected financial data are sourced from Google Finance. All data are assumed to be accurate.)
Improve Your 2011 Financial Health: Join the winning team of stock pickers with Wall St. Cheat Sheet’s acclaimed premium newsletter>>