I heard whitney tilson's interview ( AS A Friend of Fast Money)- at the same time GMCR's cEO was answering Analysts questions about Inventory and cap ex-(I wish Fran did the talking rather than the CEO- who goes off on a tangent). First if you were serious about your thesis- why dont you dial into the CC! Instead of ranting on CNBC(who is equally guilty- for gving a free passby calling for accounting shennanigans. I think the CEO and Fran addressed the inventory build up- and they cleared the fact-in writing that even when they shipped the product to the order fullfilling agent's warehouse-revenue is recognised- only when the product is shipped "with a reasonable assurance that it will be paid for!
regarding the excess inventory- coffee prices have gone up by 65%- and the number of customers have gone up and their oct numbers are good- this does not seem like shennanigans to me. Also there was a price increase- and customers ordered more in the 3rd quarter to get the lower prices- which reduced orders for the 4th quarter- which explains the "revenue miss"- remember their EPS miss was a penny- the SEC investigation costs of 14 million- which would be more than a penny ( and they spent 15 million on some environ mental stuff)
they guided for better first quarter and better 2012- infact they guided higher by 5 cents (even if you want to believe that they missed by a penny)
It is really silly of CNBC to add fuel to the fire and invite whitney tilson- who admiitted being short, and he was expected to say something positive or be objective! Like I said this guy was bashing the company- while they were answering questions he was raising- atleast cant you wait till the CC is over!
The CEO was unbearable- Fran and others-please lock this guy up and let him keep his trap shut! Of bTW they have 2 new platforms(coffee brewing machines)- they are patented- so much for the they are coming off patent dig!
IT is clear one of them is lying and einhorn and tilson are not angels- if they were short- why do they have to tell the world- sheep being led to the slaughter house- maybe- maybe not! but the way these guys are going on TV and discussing their theis- stinks, they ar not doing this for charity!
I listened to FastMoney on XM radio and the one fellow on the show whose name I cannot remember said you might wake up one morning and it could go to or be at zero!! No one tried to challenge him for that incredulous statement. They were breaking their arms patting themselves on the back for "warning viewers about Green Mountain". Yeah right, just like they did with NFLX.
I also heard them say "Friend of FastMoney Whitney Tilson". So what if he is their friend? Does that mean I should listen to him closer, or find his information more useful? No, that just means FastMoney is comfortable providing a platform for Tilson's views.
I bet if GMCR,posted blowout earnings.......cnbc.....Tilson.......Greenberg.....would be no where to be found!!!.........just shows you how the deck is stacked!!!!!!.......makes you sick!!! doesn't it????