And people think GMCR stock should be at $104? Too funny. This thing comes down tomorrow and over then next couple weeks goes lower and lower.
This is going to be an easy short from here.
Will someone please help me understand the short position? Where are all these shares the shorts have borrowed are coming from? Over the next few days GMCR shares will be sold by institutional managers re-balancing portfolios because this equity has exceeded their internal ratio rules. For example,defined benefit retirement plan fiduciaries cannot exceed 7% of a single equity. They simply have to sell now because this equity has so far outperformed everything else they have too much of it. Consider the math of 3% of your portfolio that quadruples? Is it more than 7% if everything does not quadruple? Institutions are not selling because they don't think GMCR is still a buy, only because it has grown too much. The recent general market correction is making this phenomenon worse.
Research my comments at $58 in October. Does Coke think GMCR sells at a reasonable multiple for its growth potential? Where are the 14 days of shares shorts have to buy coming from? Where are the leveraged mom and pop insiders to scare this time? Is there 10% less stock today than yesterday? Is Einhorn or another stock manipulator enough of an emperor without clothes to talk GMCR down again? What happens to shorts if there is an earning surprise next week or next quarter? Remember last year with the mild winter cutting hot drink consumption? Is it different this year?
I don't know....coke has a huge distribution. People can make a cup of coffee at home....now they can make a cup of coke at home? A real coke...at home? Genius. Absolute genius. This is huge for coke as well. Good luck shorting....
it's cheaper for me to make a cup of coffee at home in my Kuerig than it is to go to Starbuck's and buy a cup. it seriously doubt it will be that way for coke. i bet i can buy a can at the store cheaper than i can make it.
also, i can transport cans of coke when I camp, picnic or whatever. can't do that with a maker. soda/coffee makers can break and i'd have to buy a new one. cans of coke, not so much.
also, soda sales are still in decline. coffee isn't.
The existing shorts are all deep underwater at this point. At least for the next couple of days, it is probable that this will trend higher on short covering, if not an actual short squeeze, when margin calls hit.
At last count, there were 38.47M shares short, and today's volume (so far) is maybe 1/3 of that, which means that it is not possible for most underwater shorts to have covered as yet. The total percent of the float owned by insiders (18.06%) and institutions (93.70%) exceeds 100% of the float (by a substantial margin). I suspect that they are all holding tight. With Coke buying in, that would be even higher. Such a situation where the amount owned exceeds the float occurs only on a heavily shorted stock, and often leads to a squeeze.
It is more likely that shorts will be crying than laughing.
Looks like your short squeeze has already occurred. I'm guessing many covered in AH last night. Also, most shorts I know are hedged. If this thing cannot get back to the day high -- which happens to be the opening price -- you can rest assured it will be going lower over the next few days.
With the day high being the opening price, it sets an ominous tone if the pps cannot get back there today.
hey squeeze, why is this such a great deal? Coke already comes in single serve cans and very cheaply. why would i want to buy a machine and waste my time making my own soda? also, Coke is basically saying their disit channel access is only 75 per share in relation to GMCR's biz.