Anyone touching GMCR?

  • Thread starter Thread starter richyrich006
  • Start date Start date
Don't think so. They entered the position at around 100$ a share. Which means at 40$ the return is increasingly small. Perhaps they added to it, but I would guess not. I shorted at 90$ and got out at 45$. Since Einhorns Lehmann call his short picks are a good catalyst, although with Joe it did work out differently. Management sold a ton at inflated prices also. Peak marketcap was 15B$ at 80x earnings. Shows how arbitrary stock valuations can be.
 
Wow! Speaking of insider selling. Looks like major trouble ahead for the company I would think. Accounting issues will come home to roast at one time.

http://blogs.marketwatch.com/thetell/2012/05/08/green-mountain-chairman-hit-with-margin-call/

Green Mountain chairman hit with margin call

According to a Form 144 filed Tuesday morning with the Securities and Exchange Commission, Stiller indicated he planned to sell 5 million shares worth roughly $125.5 million pursuant to a “margin sell-out.”
 
Quote from macrotrader:

Wow! Speaking of insider selling. Looks like major trouble ahead for the company I would think. Accounting issues will come home to roast at one time.

http://blogs.marketwatch.com/thetell/2012/05/08/green-mountain-chairman-hit-with-margin-call/

Green Mountain chairman hit with margin call

According to a Form 144 filed Tuesday morning with the Securities and Exchange Commission, Stiller indicated he planned to sell 5 million shares worth roughly $125.5 million pursuant to a “margin sell-out.”
More...

Years ago Stephen Hilbert of Conseco was wiped out from margin loans when his stock collapsed.
 
I recall being told if I was ever offered a sum of $50 million for my company that the best thing to do would be to take it, when that means you wouldn't ever make $1 billion by selling there.
 
I came up with a buy signal for a possible trade wed 5-9. Long at 26.60 stop loss 24.15. The bad part is the 9.2% risk or 245.00 per 100 shares. I show a smallest range of 4 inside day- the highest velocity trading moves occur immediately following periods of low volatility and tight daily price range contraction. Like the smallest range of the last 5 trading days,the smallest range of 4 with an inside day is another pattern that statistically leads to good price moves. When it occurs within the context of the normal buy signal. If this trade works look for a 5-7% move or 27.93-28.46.
 
Follow up to my earlier post GMCR triggered a buy today hitting the entry of 26.60 enter now at market which is a little cheaper. Dont forget your stop loss of 24.15 once your in. Remember it is a high risk of 9.2%, anything over 5% is very risky. Have a good day.
 
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