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Green Mountain Coffee Roasters (GMCR +7.6%) trades higher a day after David Einhorn admits his...

Green Mountain Coffee Roasters (GMCR +7.6%) trades higher a day after David Einhorn admits his short position in the company wrecked his hedge fund's Q4 portfolio return. Without any company-specific news out, the working theory is that some shorts are giving up the ghost after Einhorn's bear bet backfired. (Greenlight Capital letter .pdf)
Comments (4)
  • benitus
    , contributor
    Comments (1941) | Send Message
     
    He was stupid to loose control of his short positions, particularly when everyone has been talking for at least two weeks about positive results at the last report released in the first or second week of January. He should've covered all his positions before the results were released and go long on GMCR at that time. Then, he would've made a killing. By his sudden admission, he has caused the price of GMCR to shoot up artificially and suddenly, which caught the rest of the short-sellers with their pants and set off a wave of panic buying. I was fortunate to clear all my positions on GMCR yesterday, so I'm now back to shorting GMCR near its peak at $44.88 which is reaping me some tidy profits. It should come back down to $41 within a week or so. The moral is never to loose your nerve in the short game, even if losses have accumulated. If we need the capital, then cover the short positions and take some losses, after which we can get back into the game and trade it actively. I was caught in similar fashion with FB when it went up some $7 suddenly some time ago, so I cut my losses and continued trading FB diligently until I've now recovered everything and then some. Never panic.
    24 Jan 2013, 04:20 PM Reply Like
  • alibabba
    , contributor
    Comments (60) | Send Message
     
    Deserves Einhorn right to get slammed on his shorts. The guy loves to spread bad news to try to influence the direction of a stock.
    24 Jan 2013, 04:20 PM Reply Like
  • benitus
    , contributor
    Comments (1941) | Send Message
     
    Yes, alibaba...guys like this will burn in hell. They don't realize that they're destroying people's lives with their selfish rumours. There will be eternal punishment for rumor-mongering, particularly when they make money from others' misery. Anyway, serves him right, as he deserves the treatment that he had caused to other people.
    25 Jan 2013, 10:55 AM Reply Like
  • rambler1
    , contributor
    Comments (467) | Send Message
     
    Little boys shouldn't play with matches.
    24 Jan 2013, 04:29 PM Reply Like
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