As most of you know, convicted-fraudster-turned-accounting-sleuth and all-around ham Sam Antar now spends his days blogging, exposing companies whose financial reporting and disclosures strikes him as a little too familiar to some of the tricks he pulled in his Crazy Eddie days. Sam also spends a fair amount of time educating the less criminally-inclined on […]
Green Mountain Coffee Roasters Inc. […], maker of the single-serve Keurig brewing machine, fell to the lowest in seven months after hedge fund managing director Whitney Tilson said there may be potential for accounting fraud at the company. Green Mountain fell 10 percent to $58.19 at 1:07 p.m. in New York, after dropping to $56.19, the lowest intraday price since March 10. The shares lost 22 percent in the week before today after David Einhorn, the president of Greenlight Capital Inc., said the company has a “litany of accounting questions” and needs to improve its transparency. [Bloomberg, Earlier]
“I believe the available market is smaller than the bulls believe it to be and that Green Mountain has already penetrated a good chunk of it,” Einhorn, president of Greenlight Capital Inc., said today during his so-called “GAAP-uccino” presentation at the Value Investing Congress in New York. “The market is limited,” he said. The company also has a “litany of accounting questions,” Einhorn said, adding that it has reduced transparency and needs to improve disclosure. [BBW]
As you may know, Green Mountain Coffee Roasters has had some issues with its financial reporting. So much so that, about a year ago, the SEC asked to poke around. Ever since then, they company has been a favorite of Sam Antar, who has written a slew of blog posts about their shoddy accounting. After a tough year of criticism, it appears the company seems to have found a solution to their double-entry woes – they didn’t have a Chief Accounting Officer!
Green Mountain Coffee Roasters, Inc. […], a leader in specialty coffee and coffee makers, today announced the appointment of Stephen L. Gibbs as its Vice President and Chief Accounting Officer effective immediately. This newly created position has been established to strengthen GMCR’s accounting function and overall financial control environment.
So everything should be on the straight and narrow now. I just hope Mr. Gibbs doesn’t mind being asked awkward questions.
UPDATE: The company is also looking for a Fraud Prevention Manager if you know anyone who is interested.
Back in September, Vermont-based Green Mountain Coffee Roasters put the world on notice that the SEC was asking some questions about their revenue recognitions policies. Despite the SEC Q&A, analysts we’re cool with the company and the GAAP the crunchy accounting group was putting out.
Also at that time, the company disclosed that there were some immaterial accounting errors that were NBD. That was until they dropped a little 8-K on everyone last Friday!