Somewhat related: It’s National Coffee Day. Does the SEC have no sense of timing?
Shares of Green Mountain Coffee Roasters Inc (GMCR.O) fell as much as 18 percent on Wednesday, a day after it said U.S. regulators made an inquiry into some of its revenue recognition practices and its relationship with a vendor, which analysts said was M.Block & Sons.
However, most analysts believe Green Mountain’s accounting policies are sound.
“We are comfortable with Green Mountain’s revenue recognition policy, the fact that it does not have control over M. Block & Sons, unquestioned management integrity and strong auditors (PricewaterhouseCoopers),” Janney Montgomery Scott analyst Mitchell Pinheiro said.
At least this analyst knows the name of the auditors. We’re looking straight you, Dick Bové.