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Green Mountain Roasted: 8-K Footnote Sends Stock Down 15% After Hours

Tyler Durden's picture




 

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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Tue, 09/28/2010 - 17:10 | 611278 VK
VK's picture

Hey, where's Robo?? ROFL.

Tue, 09/28/2010 - 17:20 | 611310 chrisd
chrisd's picture

Still trying to get the CEO an interview!

Tue, 09/28/2010 - 17:23 | 611312 etrader
etrader's picture

Finding a tampon to stop the anal bleed, after this ones pounding .... :>

Tue, 09/28/2010 - 17:52 | 611372 mikla
mikla's picture

Tue, 09/28/2010 - 23:09 | 611817 New_Meat
New_Meat's picture

despair.com always good for a giggle, banzi-guy better/more on-topic for here, though. - Ned

Tue, 09/28/2010 - 17:11 | 611280 sysin3
sysin3's picture

Post-it note on my computer screen :

"ACCOUNTING IRREGULARITIES = SELL"

Wed, 09/29/2010 - 06:19 | 612072 StychoKiller
StychoKiller's picture

It's the ghost of Miniscribe I tell ya!

Tue, 09/28/2010 - 17:12 | 611283 Nihilarian
Nihilarian's picture

Same management as STEC?

Tue, 09/28/2010 - 17:12 | 611284 Nolsgrad
Nolsgrad's picture

perhaps DDRX wasn't such a good buy after all.

Tue, 09/28/2010 - 17:15 | 611293 vote_libertaria...
vote_libertarian_party's picture

They were already at a pe of 71.  Revenue 'adjustments' make it 700.

 

Even gooder!!! buy buy buy

Tue, 09/28/2010 - 17:15 | 611294 Id fight Gandhi
Id fight Gandhi's picture

Naw, people love paying for overpriced coffee. What 5 bill market cap?

Hope the fuckers get trashed for fraud and lies.

Tue, 09/28/2010 - 22:44 | 611778 drwells
drwells's picture

Given that this was IBD's #1 momo whore more than a year ago, I was surprised to see it was still listed.

Tue, 09/28/2010 - 17:17 | 611296 etrader
etrader's picture

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.

 

Tue, 09/28/2010 - 17:19 | 611306 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Anyone know the ABC consumer comfort index info? Ta!

Tue, 09/28/2010 - 17:26 | 611322 Bill D. Cat
Bill D. Cat's picture

Fulfillment vendor ? ..... sounds filthy .

Tue, 09/28/2010 - 17:38 | 611343 RobD
RobD's picture

So is that what they call high priced call girls these days?

Tue, 09/28/2010 - 17:33 | 611334 -1Delta
-1Delta's picture

anybody know why the CBOE option volume and P/C ratios are not working today?

Tue, 09/28/2010 - 17:45 | 611355 Cecil Rhodes
Cecil Rhodes's picture

In the opinion of Arthur Anderson, Green Mountain Coffee's consolidated financial statements 

are hilariously optimistic and rife with fraud, in all material respects.


Tue, 09/28/2010 - 17:49 | 611362 Chemba
Chemba's picture

After hours it is trading all the way back to where it was...three weeks ago.

Tue, 09/28/2010 - 17:50 | 611365 kengland
kengland's picture

Kripsy Kreme

Tue, 09/28/2010 - 17:50 | 611366 binomial
binomial's picture

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.

Wed, 09/29/2010 - 06:22 | 612074 StychoKiller
StychoKiller's picture

So, what you're saying is that Quantum Finances only depend on your frame of reference?

Wed, 09/29/2010 - 08:32 | 612250 binomial
binomial's picture

LOL - perhaps!

I'm not sure about relativity, but apparently superposition is possible:

http://sciblogs.co.nz/physics-stop/2010/09/22/quantum-finance/

Tue, 09/28/2010 - 17:52 | 611375 Rick64
Rick64's picture

The tip of the iceberg. Common place nowdays.

Tue, 09/28/2010 - 17:59 | 611387 UninterestedObserver
UninterestedObserver's picture

I'm still in shock the SEC did something- they must have fucked up a latte of an investigator

Tue, 09/28/2010 - 21:33 | 611663 carbonmutant
carbonmutant's picture

They refused to donate to the current WH initiative... that's really all it takes for an SEC investigation.

Tue, 09/28/2010 - 18:05 | 611399 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

A lie here, a lie there. The Fed would be proud!

Tue, 09/28/2010 - 18:27 | 611435 bugs_
bugs_'s picture

I heard a rumor they were looking for new accountants recently.

Tue, 09/28/2010 - 18:29 | 611438 Bluesquid
Bluesquid's picture

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..

Tue, 09/28/2010 - 18:54 | 611465 Missing_Link
Missing_Link's picture

And it isnt owned by Israel, its owned by the man that started "Hightimes".

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!

Tue, 09/28/2010 - 18:33 | 611440 shushup
shushup's picture

Don't worry - Brian Suck will ramp it back up tomorrow.

Tue, 09/28/2010 - 18:35 | 611442 Bluesquid
Bluesquid's picture

ez wider, my bad

Tue, 09/28/2010 - 18:41 | 611446 old_turk
old_turk's picture

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.

 

Tue, 09/28/2010 - 18:41 | 611447 RobotTrader
RobotTrader's picture

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.

 

Tue, 09/28/2010 - 18:58 | 611467 goldmiddelfinger
goldmiddelfinger's picture

Your guess about the green mountain chart was sure wrong. The low floater IBD 100s always end up humped and dumped

Tue, 09/28/2010 - 20:32 | 611587 NumberNone
NumberNone's picture

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 

Tue, 09/28/2010 - 20:51 | 611607 rocker
rocker's picture

So when does GE go down. They have the ultimate mine field of footnotes. Where are Jack's diapers for life.

Tue, 09/28/2010 - 23:15 | 611820 New_Meat
New_Meat's picture

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

Tue, 09/28/2010 - 21:20 | 611638 CitizenPete
CitizenPete's picture

Murphy on Goldseek (audio): 

 

http://radio.goldseek.com/nuggets/murphy09.28.10.mp3

 

Tue, 09/28/2010 - 21:15 | 611642 CitizenPete
CitizenPete's picture

 

IMF to do mandatory checks of financial systems

 

http://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...


 

Tue, 09/28/2010 - 23:17 | 611822 New_Meat
New_Meat's picture

whoever junked you probably has never been under the thumb of a corporate bean counter ;-)

- Ned

Wed, 09/29/2010 - 06:27 | 612080 StychoKiller
StychoKiller's picture

Mmmmm, numbers!  Make mine crunchy! :>D

Wed, 09/29/2010 - 06:26 | 612078 StychoKiller
StychoKiller's picture

Hey!  Isn't that the guy from the "I'm a PC and I'm a Mac" commercials?

Tue, 09/28/2010 - 22:10 | 611721 Bankster T Cubed
Bankster T Cubed's picture

i want my salesforce.com

Tue, 09/28/2010 - 23:00 | 611803 George Costanza
George Costanza's picture

most bank accounting books are worse than GMCR.

Tue, 09/28/2010 - 23:50 | 611850 snowball777
snowball777's picture

Oooohhh...money laundering with a 'friendly vendor'.

Wonder what they're hidin' in that coffee...

Tue, 11/16/2010 - 10:07 | 730425 daniel
daniel's picture

i love zerohedge policy cheap hosting

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