Cramer ‘Sell Blocks’ Green Mountain (GMCR)

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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 ‘into the sell block.’

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