Green Mountain Coffee Roasters is considered as a short sale candidate. (A stock sold short makes money in the event the stock price declines.) This corporation is escalating at a high speed, but there are indications of potential difficulties. It is a quite actual example of bullish investors versus bearish investors. Like a mystery novel, there are spies, potential misrepresentation and contradictory information.
Decision making under uncertainty is explored, every day must be dealt with by a factor professional investors. Case discussion issues include dangers in short selling, margin loan calculation, investor behaviour, stock valuation analysis, predicting company growth potential, forecasting earnings reports, management incentives, actions taken by management to improve stock price, competitive accounting practices, assessing business impact of a patent expiration and also the impact of company growth rate on stock market valuation.
Selling Short Green Mountain Coffee Roasters case study solution
PUBLICATION DATE: July 26, 2012 PRODUCT #: W12073-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
