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David Einhorn’s Case Against Green Mountain

David Einhorn, president of Greenlight Capital Inc., speaks at the Value Investing Congress in New York.
Peter Foley/Bloomberg via Getty Images
David Einhorn, president of Greenlight Capital Inc., speaks at the Value Investing Congress in New York.

Earlier this week hedge fund manager David Einhorn of Greenlight Capital made his bearish case against Green Mountain Coffee at the Value Investing Congress in New York.

You can see the presentation’s 110 slides, headlined “GAAP-uccino," here.

I found pages 90 to 97 especially interesting. This details Greenlight’s “field research,” and includes interviews with former employees of Green Mountain and its fulfillment partner, M. Block and Sons.

From the report: “The research shows that Green Mountain and M. Block are potentially engaged in a variety of shenanigans that appear designed to mislead auditors and to inflate financial results.”

Green Mountain declined comment, telling us that it’s in its pre-earnings quiet period. The company has not announced when it will release results of its fourth quarter, which just ended.

This, as I pointed out Tuesday, it's the company’s audited quarter.

Pass the cinnamon, please.

Enjoy!

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