Cramer ‘Sell Blocks’ Green Mountain (GMCR)
September 30, 2010 by Jon C. Ogg
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
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