You do the math, which looks like a better coffee stock investment.
Even if you totally ignore the accounting issues, ongoing SEC investigation, expiring patents, and massive insider selling during the period of overstated earnings; fundamentals still do not support a current PE of 60 , more than double other stocks in the industry.
This may still be a great company, but it is a garbage stcock at these levels.
You gotta figure this thing won't settle till we hit 35 to 40. Start averaging down under forty all you crazy longs taking the ride. The ride up to 120 from 30 probobly never should have happened but these guys created a nice illusion with inflated inventories, constantly announcing expansion plans which were financed by selling shares at bloated prices, and overstating earnings. And well they were doing this they were selling millions worth of their own shares.
I agree. This story is so glaringly obvious that it's all downside risk from here. Why someone would go long is a mystery. At best I'd take a pass, but it's so easy to buy tons of puts and enjoy the ride down. That's what I did. Too easy.
Wow, you longs are as silent as management. Are you in a quiet period too? Management had no problem announcing a 3rd unnecesary expansion the day after Einhorn's research came to light, maybe because the CEO sold 3.6 million dollars worth of shares on 10/18.
All summer long; announce an expansion , stock goes up, insiders sell; announce an expansion, stock goes up , insiders sell; announce an expansion, stock goes up, insiders sell