Green Mountain Coffee Roasters Inc. Message Board
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SEC Investigation now in it's 15th month
This from GMCR filing:
"At this point, we are unable to predict what, if any, consequences the SEC inquiry may have on us. However, the inquiry may continue to result in considerable legal expenses, divert management’s attention from other business concerns and harm our business. If the SEC were to commence legal action, we could be required to pay significant penalties and/or other amounts and could become subject to injunctions, an administrative cease and desist order, and/or other equitable remedies. The resolution of the SEC inquiry could require the filing of additional restatements of our prior financial statements, and/or our restated financial statements, or require that we take other actions not presently contemplated. We can provide no assurances as to the outcome of the SEC inquiry."-
Read the seeking alpha article...in order for it to become an investigation it should convert from an inquiry to an investigation within 2 months after the inquiry was opened. It has been well over 2 months (inquiry opened 9/10). An investigation can be opened up independently but that does NOT seem to be the case here. So whatever is going on is still either an inquiry or nothing. Just more BS to slam the stock.
- 2 Replies to vinayaswath
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If the inquiry in fact changed to a formal investigation logic would dictate that a FORMAL announcemnt would have been made from someone.
Don't you think Einhorn would have been all over that.
Whatever! -
"Read the seeking alpha article...in order for it to become an investigation it should convert from an inquiry to an investigation within 2 months after the inquiry was opened. It has been well over 2 months (inquiry opened 9/10). An investigation can be opened up independently but that does NOT seem to be the case here. So whatever is going on is still either an inquiry or nothing."
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Actually you should re-read it. If GMCR is still addressing the SEC inquiry in its September 24 filing, the matter is NOT over. How you want to look at is your choice. Just remember all we are seeing is a predictable bounce in shares. If GMCR thought it was over, they would have stated it.
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Actually, I just looked into it. Yes, they are.
September 24 2011 filing:
"As previously disclosed the staff of the SEC’s Division of Enforcement informed us that it was conducting an informal inquiry into matters at the Company. At the direction of the audit and finance committee of our board of directors (audit committee), we are cooperating fully with the SEC staff’s inquiry. At this point, we are unable to predict what, if any, consequences the SEC inquiry may have on us"
http://seekingalpha.com/article/314577-is-green-mountain-coffee-roasters-under-formal-investigation?source=yahoo- 1 Reply to paul_speculator
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Well, lets see. They have already restated more than a year ago. They then announced several months back that the SEC was advising them as to how to put stricter accounting practices in place (hiring a head accountant, etc.) to manage such high growth rates. Sounds to me like this thing is wrapping up without significant incident.
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how do you know it is in its 15th month? It could have been resolved already for all we know. just asking.
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I believe this was from September of 2010. This is not news.
- 1 Reply to vtfurn
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If there was something there...you would think in 15 months, it would have been found!! :-)
HH
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