So Larry, it seems like Einhorn was unable to present a critical review of GMCR with conviction this morning. Although we are lucky for that, he, along with several others, seem to still have a disproportionately large short on GMCR, nonetheless. On top of that, GMCR seems to suffer from lukewarm support from the analyst world. Your lack of leadership caused us shareholders to take a bullet last year and again this spring and summer, while you had to take a little heat during some conference calls, not a fair trade as far as I am concerned. So, here you have an opportunity to do something right..it's a simple concept which you should be doing any way, to serve the shareholder community (which is your fiduciary obligation) and help restore some sense of respect for GMCR: address whatever Accounting concerns there are and solve to them! Get the SEC to complete their inquiry. Get this done, now! If you have to dump Fran and get a stellar CFO with an impeccable and clean reputation, so be it. You are a nincompoop and a weak leader if you can't or won't do this.
What were Larry,s corporate achievements priors to joining GMCR? Perhaps, GMCR is quiet in not clearing the air both about the SEC enquiry and the baloning inventory or other accounting irregularities as alleged by the E'horn & Co, and are actually assisting the SEC with their silence to enquiry in the massive short selling in this stock, so the SEC may take the appropriate action against these individuals with their programme trading for profit from rumour mongering, which is equivalent to 'wire fraud'
My two pennies worth. I am long in GMCR
I am only thinking out of the box, since the SEC enquiry is taking much too long!
mani..too bad Larry is not as concerned with the stock price. He should be...he has put it on the verge of quickly dropping into single digits and potentially spiraling into nothingness by his poor leadership. I hope he delivers a great quarter, a competent and confident conference call, and specific plans for repairing the stock price, but, as you can see, am very cautious on his ability...he has been outmatched by those in the investment community.
So Larry...are you really this stupid? Come on...so we gave you credit for tripping over the idea of exploring the international market (after it has been beaten into your head for a very long time), you delay releasing year end results by about 20 + days? Seriously? Are you really that stupid? The only positive strategic value one can guess is that you have something up your sleeve..of course, that would be a shock to everyone. You continue to erode confidence the investor world could have in GMCR's management!
I think any CEO would not comment on the company's stock price directly or try to move it up by comments. It simply does not work and investors are well aware of the company's or CEO's position. But what we can expect from Larry is a stellar quarter compared to peers. It is relative. If the whole coffee industry did well and GMCR did OK compared to its peers, it is not stellar. I really think that the peers are suffering in this economy and if GMCR reports a stellar quarter, you will see big guys jumping on board. What Larry did last quarted by announcing the 500 million buyback is the best he could do to give a bottom. They might increase that to 700 million if their capex improves and they beat estimates. I will be looking for an increase in the cashflow and future projections P/S. This share is on deal if the results beat the estimate. If they have a lack luster quarter, it will trade this range till Christmas.
Sentiment: Strong Buy
Do not disturb Larry, he is practicing mini golf at his comfort office room and listening Free Falling John Mayer,
" I am a bad boy for breaking her heart, and I'm free, free fallin, fallin?....."
Larry...wake up! Have you not realized what is going on here? They are trying to put GMCR out of business! SBUX is not your friend. Motley Fool is not your friend. Many of the analysts are not your friend. You need to figure this thing out..solve the SEC accounting inquiry, solve the inventory concerns, box out the competition! The daily media bash and weak stock price movement are giving you a failing grade!
Unfortunately, Larry is asleep and will remain that way. He's trying to fight the battle with conservative, more realistic guidance and share buybacks. The Bears are fighting with accounting fraud and too much CAPEX. Until he addresses the Bears head on, expect more of the same. Even the Longs will keep using the opportunity to short againt their position. If nobody wants to pay 8x earnings, might as well take it to 4 or 6x.
Well, my thoughts were a bit premature on the effect of Einhorn;s comments. I still don't think he delivered his position with conviction, rather with an attempt at humor. Nonetheless, he is effective and has, again, orchestrated a plan to push down GMCR's share price.
Larry..you were lucky! Be a leader! Take the opportunity here to burn the shorts...their belly's are full...be aggressive and slaughter these guys! If you don't, if you sit back and be quiet, you don't deserve being a CEO.
Couldn't agree more with this. Managements oftentimes take arrogant stances to short sellers, as do most long investors. One way to deal with opposing views is certainly to ignore naysayers and prove them wrong over time with cold hard facts. But a more efficient way is to deal with your naysayers head on, and swiftly. Turn them into believers the right way. The fact of the matter is, if the company dealt with these issues head on, Einhorn and his band of lackeys would not only walk away, they may even consider going long themselves. At worst, they walk away and allow the stock to appreciate to a more appropriate market valuation. The only thing you have to lose is IF there truly is fraud going on at the company. Otherwise dragging this on for so long only makes the Bear case seem more probable than possible.