Background[ edit ] The founder of Blue Ridge Capital, John Griffin, is believed to have been a "right-hand man" to the billionaire manager Robertson. Blue Ridge's investment thesis is based on fundamental analysisand focuses on companies that have competitive advantages in their industries, while shorting those thought to have "fundamental problems. Generally, they are focused on individual companies rather than a sector; a "checklist methodology" is used to identify good performers in a given category. Industry outlook is also taken into account in the investment process.
GMCR when it traded at high valuation multiples years ago. At the time investors would swoon over how it was able to sell coffee, a commodity, in little cups to consumers for a huge markup.
|He was a member of the Sigma Alpha Epsilon fraternity at Cornell.|
|Is Netflix The Next Green Mountain Coffee Roasters? - Netflix, Inc. (NASDAQ:NFLX) | Seeking Alpha||About this Typology About this Typology This typology breaks down the traditional boundaries between the nonprofit and private sectors and draws definition to this new institutional animal--part business-part social--the social enterprise. In doing so, the typology explores how institutions have combined a mix of social values and goals with commercial business practices and how they have come up with ownership models, income and capitalization strategies, and unique management and service systems designed to maximize social value.|
They bought GMCR shares at huge valuation multiples without a second thought about other entrants competing in the pre-ground, single-serving coffee market. This story did not end well for investors who bought GMCR shares at high valuation multiples.
SBUX sent shares of this innovative company plummeting.
A similar story is unfolding for Netflix. Netflix could see further multiple compression as competitors challenge its market. Currently, Redbox Instant by Verizon is being tested by about Verizon employees.
Its catalogue will initially focus on newer movies that are available for sale and rental. At the end of June, Netflix had approximately 24 million U. With this change customers could easily download content directly to their set-top boxes, game consoles, and mobile devices.
At the moment, it is unsure when this service will be available, but it is expected to be launched somewhere between late November and mid December, after it has been publicly tested.
Room to Fall Netflix investors have already seen huge price declines, but this does not preclude more price declines. Consider the following financial metrics:Full disclosure: I am a big David Einhorn fan. I have followed his career from Allied to Lehman to Green Mountain Coffee Roasters, and I listen to or actively search for transcripts of his speeches at investor events/conferences.
One of my favorite stocks to cover in my early years at Seeking Alpha was Green Mountain Coffee Roasters (or Keurig Green Mountain). The k-cup maker was one of .
Determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body.
Last year, Einhorn announced a short position on Green Mountain Coffee Roasters, which caused a big sell-off in the stock. Green Mountain was already a popular stock to short, but Einhorn backed.
Green Mountain's post Coca-Cola deal hype has calmed. Pullback in the stock is good for investors and company's buyback plan. Valuation has come down and investors can be realistic.
Short squeeze. RED FLAG & VALUATION Green Mountain Coffee Roasters, Inc. (GMCR) % 22 years The combination of negative economic EPS with a rich stock valuation drives a Risk/Reward Rating of Dangerous for GMCR.
> 50 Trust Performance More Reports 3 years.