Shorts should note that in the recently filed 10-K the auditing firm - Price Waterhouse Coopers - has now blessed the internal controls that had been cited as a weakness a year ago when the inquiry started. This bear raid is all smoke and no fire. There are no crooks here. Just good people trying to guide a rocketship into orbit, and they have done an incredible job to date. I live in VT and know many people at GMCR. It is almost comical reading Gary Weiss at Seeking Alpha. It's pretty sad that he tries to build credibility for his story by citing other people's accusations and suspicions. Time will tell. In the mean time - thanks for the buying opportunity.
A SEC investigation goes formal after 60 days automatically. When a investigation is over the SEC is required to issue a statement to that affect. If they issue no statement the investigation is presumed to be active but they are not required to move forward on it till they deem it advisable.
It's seems that the scandals in D.C. involving Congressional pundits where the buying and selling of stocks based on insider information could be causing a haymow. This might be causing delays in the investigation of certain stocks as perks were given to some in the form of stock information.
As reported on by the news medias.
caveat emptor, quia ignorare non debuit quod jus alienum emit.
( let the purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party .)
It's too bad that GMCR remains silent. That is usually the case when there is nothing good to say. Apparently they can't defend what is being said, so their silence is very telling. If that is not the case, then their silence is very stupid.....
The reality is that anything they say can be used against them......
With so much in stock of this company, why would anyone take risk in saying something that some lawyer will be able to twist in court.
In a way it is a good strategy.
On the flip side, it tells you that there is a chance of something bigger going on behind the scenes in relation to the SEC investigation.
Both are just risks. In the middle of that is the earnings and guidance that will be happening in the next report. Hard to see how this company's management can remain focussed....and that is 'partly' the basis for shorting the stock.
It is good that GMCR is employing people. Actually it is great!
The issue is really about market capitalization for this business. Instead of 8 billion, if it was 2 billion, they could be running a good business with same number of employees...this is probably what happens over time.