Activist investor David Einhorn, who pulled the magic rug out from under Green Mountain Coffee Roasters (GMCR) high-flying shares in October, is now saying the company’s internal accounting review since then “kind of feels like a whitewash to me”, Reuters reported.
Einhorn’s short interest in Green Mountain apparently helped turn around fortunes for Greenlight Capital, the investment firm her oversees, after the company was posting so-so returns during the summer. Einhorn apparently still has skin in the game on the short side of this trade, although it’s unclear how much.
Since he announced his short position on Oct. 17, shares are down about 50%.
Einhorn said at his October presentation that Green Mountain’s accounting is faulty, and totally opaque. New competition in K-Cups could also cut into the company’s business, he argued.
Green Mountain conducted an internal audit in 2010, and more recently CEO Larry Blanford said on the company’s earnings call that the company has found “no wrongdoing.”
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