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Dunkin' Initiated 'Sell' By Lead Underwriter Goldman Sachs

Shares of Dunkin' Brands slid in trading Tuesday after Goldman Sachs, the lead underwriter of its initial public offering, initiated coverage with a 'sell' rating.

"I've spent like 25 years in the business. I'm not sure I've ever seen something like this," said Patty Edwards, chief investment officer at Trutina Financial. "That being said, I can see some of the headwinds [Dunkin'] is up against."

Dunkin' is best known for its Dunkin' Donuts brand, which largely serves coffee drinks and donuts. The Canton, Mass.-based company is trying to expand across the U.S., Edwards said. In most cases, though, Dunkin' is selling to "the blue-collar worker," who Edwards said are still hurting because of the sluggish U.S. economy.

The headwinds are enough for Edwards to stay away from this stock right now. Veracruz founder Steve Cortes, however, takes a different view. He noted JPMorgan Chase added DNKN to its conviction buy list.

"I think this kind of affordable luxury category makes sense," Cortes argued. "They are going to successfully expand to the West. Plus, I drink it every single day."

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Trader disclosure: On Sept. 6 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes is long Treasuries ; Cortes is long (WMT); Cortes is long (SO); Cortes is short the Euro; Cortes is short Silver; Cortes is short the Aussie Dollar; Cortes is short the Nadsdaq; Edwards is long the Canadian Dollar; Edwards is long (RSW)

For Patty Edwards
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Larry McDonald
** No disclosures

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Symbol
Price
 
Change
%Change
DUNKIN
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