In October 2011, noted hedge fund manager David Einhorn of Greenlight Capital given a presentation at an investors' conference analyzing the business and bookkeeping quality weaknesses of Green Mountain Coffee Roasters. Until then Green Mountain had exhibited accelerated company and stock price growth. He questioned Green Mountain, the manufacturer of Keurig single-serve coffee machines and their renowned K-Cups about their growth prospects, their management of purchases, their plan for the expiration of accounting practices, an important patent and other issues. The case scenario depicts Einhorn’s debate and the counter claims by analysts. The students are indicted with scrutinizing the merits of Einhorn’s arguments and the counter claims. The case scenario exposes the students to a lengthy tactical, fiscal and accounting analysis of a company and presents an example of the way in which a thorough business and bookkeeping investigation using mainly public information can change market's awareness of valuation of a business.
PUBLICATION DATE: December 18, 2012 PRODUCT #: 113035-HCB-ENG
Trouble Brewing for Green Mountain Coffee Roasters Case Study Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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