Thursday, October 20, 2011

Of Course GMCR is a Short.

With GMCR down almost 40% since mid September, many are crediting David Einhorn's 100 slide powerpoint presentation as the cause of the coffee company's decline.  While Einhorn is great, and I'm sure his presentation was compelling, there really was only one thing you needed to know about GMCR.  It was selling at 100x earnings--a coffee machine company--selling at 100x earnings.  It's still at 68x.

With NFLX and GMCR down who's next?  CRM? LNKD? CMG?

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