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Green Mountain Roasted: 8-K Footnote Sends Stock Down 15% After Hours
For all those engaged in a repeat of the world's most ridiculous dash for trash, what just happened to GMCR may be a stark reminder that easy come may just as well mean easy go. The stock, which earlier closed at a fresh all time high, has plunged in the AH session after deep in the bowels of an 8-K just released, the firm disclosed the following stunner:
On September 20, 2010, the staff of the SEC’s Division of Enforcement informed the Company that it was conducting an inquiry and made a request for a voluntary production of documents and information. Based on the request, the Company believes the focus of the inquiry concerns certain revenue recognition practices and the Company’s relationship with one of its fulfillment vendors. The Company, at the direction of the audit committee of the Company’s board of directors, is cooperating fully with the SEC staff’s inquiry.
Could it be possible? A company that has ramped about 1,000% from its lows if not more, having done so on allegedly misrepresented financials? This will surely be the first time in history. And speaking of jokes, whatever happened to the SEC's inquiry into revenue recongition practices by Jim Cramer's theStreet?
One wonders just how many of the crappiest names that have managed to fool momentum chasing day traders for over a year, will be next to follow GMCR, which incidentally will be delighted to know that the recent bout of pseudo-hyperinflation in input costs will soon truncate its margins by a bit to quite a bit.
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Hey, where's Robo?? ROFL.
Still trying to get the CEO an interview!
Finding a tampon to stop the anal bleed, after this ones pounding .... :>
despair.com always good for a giggle, banzi-guy better/more on-topic for here, though. - Ned
Post-it note on my computer screen :
"ACCOUNTING IRREGULARITIES = SELL"
It's the ghost of Miniscribe I tell ya!
Same management as STEC?
perhaps DDRX wasn't such a good buy after all.
They were already at a pe of 71. Revenue 'adjustments' make it 700.
Even gooder!!! buy buy buy
Naw, people love paying for overpriced coffee. What 5 bill market cap?
Hope the fuckers get trashed for fraud and lies.
Given that this was IBD's #1 momo whore more than a year ago, I was surprised to see it was still listed.
Like Hendry Pointed out in his interview, times are getting rough for the mindless
Specs.... Its going to be a drip, drip, drip of hedgies / funds closing up shop as we move along.
Anyone know the ABC consumer comfort index info? Ta!
It's ok, i've found it:
http://www.reuters.com/article/idUSN2861067620100928?type=marketsNews
Fulfillment vendor ? ..... sounds filthy .
So is that what they call high priced call girls these days?
anybody know why the CBOE option volume and P/C ratios are not working today?
In the opinion of Arthur Anderson, Green Mountain Coffee's consolidated financial statements
are hilariously optimistic and rife with fraud, in all material respects.
After hours it is trading all the way back to where it was...three weeks ago.
Kripsy Kreme
OK, it seems that Tyler still doesn't get it ...
momentum traders are NOT fooled by fraudulent fundamentals, because they just don't base their decisions on that.
As far as they're concerned, ALL fundamental information about a company could be fraudulent,
or not, it doesn't matter.
Only risk management matters. Direction is determined from a 5 second look at the chart.
Their single fundamental imperative is that THEIR business must be profitable.
Companies and shares in companies are like subatomic particles - here today, gone tomorrow, with only a brief impact on our lives.
So, what you're saying is that Quantum Finances only depend on your frame of reference?
LOL - perhaps!
I'm not sure about relativity, but apparently superposition is possible:
http://sciblogs.co.nz/physics-stop/2010/09/22/quantum-finance/
The tip of the iceberg. Common place nowdays.
I'm still in shock the SEC did something- they must have fucked up a latte of an investigator
They refused to donate to the current WH initiative... that's really all it takes for an SEC investigation.
A lie here, a lie there. The Fed would be proud!
I heard a rumor they were looking for new accountants recently.
Great coffee, and not over priced at all. Quite cheap relative to crapbucks. And it isnt owned by Israel, its owned by the man that started "Hightimes".
So if every company fudges the books, why is this company being targeted? hmm..
Oh! Well, that certainly fills me with confidence that it's a well-run and thoroughly reputable company. Not run by those dirty Jews, you say, but rather by decent, respectable pot-smokers? Buy buy buy!
Don't worry - Brian Suck will ramp it back up tomorrow.
ez wider, my bad
Not channel stuffing, no, no, no!!! <sarc off/>
Not again, and what those Repo 105 window dressing shams?
Oh! That's standard practice so that's ok.
Well, channel stuffing is standard practice just ask Harley Davidson and Krispy Krem ... oh, never mind.
I was at an IBD Meetup last night.
The IBD moderator said that hundreds of huge funds were in GMCR.
Hilarious. Now they cannot get out fast enough.
Now we have to watch to see where that "money" rotates to.
After taking a 15% haircut, no doubt they will be looking in the dumpster bin to buy some low floater crap stocks to "catch up".
My bet is that DRYS will be dryhumped by these guys tomorrow.
Your guess about the green mountain chart was sure wrong. The low floater IBD 100s always end up humped and dumped
Come on guys...looks like the coffee's not the only thing about to get roasted at Green Mountain.
http://www.youtube.com/watch?v=_sarYH0z948
So when does GE go down. They have the ultimate mine field of footnotes. Where are Jack's diapers for life.
Immelt has the O-Put, GE Capital a "bank", but their green stuff isn't going quite as planned. They tried to partner with AEP to get rid of nasty invisible gas, instead AEP is putting their money into the no-gas plant.
- Ned
Murphy on Goldseek (audio):
http://radio.goldseek.com/nuggets/murphy09.28.10.mp3
IMF to do mandatory checks of financial systemshttp://uk.reuters.com/article/idUKTRE68Q53G20100927
The International Monetary Fund said on Monday it will conduct mandatory check-ups of the financial sectors of 25 systemically-important countries...
GMBC
http://williambanzai7.blogspot.com/2010/09/green-mountain-bean-counters....
whoever junked you probably has never been under the thumb of a corporate bean counter ;-)
- Ned
Mmmmm, numbers! Make mine crunchy! :>D
Hey! Isn't that the guy from the "I'm a PC and I'm a Mac" commercials?
i want my salesforce.com
most bank accounting books are worse than GMCR.
Oooohhh...money laundering with a 'friendly vendor'.
Wonder what they're hidin' in that coffee...
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