Digging Deeper Into Green Mountain’s Profits

It’s time to question the financials of Green Mountain Coffee Roasters.

Shares in the company were halved in value on Thursday after the company reported disappointing second-quarter earnings Wednesday evening and forecast slower growth for its 2012 fiscal year.

The size of the drop in the stock suggests investors have concerns other than a slower growth rate.

A major one is whether Green Mountain has been using accounting maneuvers to make its profit look stronger than it is. David Einhorn, who manages the Greenlight Capital hedge fund, questioned the company’s financials in a presentation at a conference in October last year.

Green Mountain, based in Waterbury, Vt., sells single-cup coffee pods and brewers, and, until the fall of last year, had the best-performing stock on major exchanges over the prior five years.

Read Full Article from New York Times

- Posted: 2012-05-04 13:06:29

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