Cramer ‘Sell Blocks’ Green Mountain (GMCR)
Jim Cramer came to the same conclusion we did about Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR)… This week’s news about the accounting and SEC inquiry is a game changer. On tonight’s “MAD MONEY” on CNBC, Cramer said it goes…
A bear raid is coming and the short sellers will attack this high-multiple stock. The charges are not the issue because they are small, but these involve revenue recognition issues back to 2007. That is not cool.
A key issue we had been that management chose to report the SEC and accounting issues effectively upon the closure of the Lavazza deal, which is a no-no in our book.
Green Mountain shares recovered 0.4% to $31.19 today in regular trading, but shares are down over 2% at $30.50 after the Cramer bash.
Keep these levels in mind. The low on Tuesday was $30.55, and the high was $32.18. Shares hit $32.44 today but that could not hold and the stock closed at $31.19. The 52-week range is $19.87 to $37.97, and that high was just hit this week.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.