Keurig Green Mountain Inc (GMCR): Did Whitney Telson End Up Covering his Shorts At a Loss?

Keurig Green Mountain Inc (NASDAQ:GMCR) have had its fair share of troubles in the past, but the company seems to have moved ahead without any significant damages. The real positive surprise for Keurig Green Mountain Inc (NASDAQ:GMCR)’s Shareholders came when The Coca-Cola Company (NYSE:KO) bought a 10% stake in Keurig Green Mountain Inc (NASDAQ:GMCR) in March this year and also exercised its option of buying an additional 6% stake in May.

We at Insider Monkey, went back two years in the past to see if the views, Whitney Tilson from T2 Partners shared regarding Keurig Green Mountain Inc (NASDAQ:GMCR) on CNBC two years back, do they still hold? Surprisingly, in May 2012 when Tilson gave a bearish outlook on Keurig Green Mountain Inc (NASDAQ:GMCR)’s stock, the company was actually nearing its lows at below $25 and since then had a straight ride up (with minor hiccups) to above $110, where it trades even now.

“We have been short at as high as the 80s, it’s down to 20 bucks from 50 and 30 and we are not interested in covering a single share, in our view the investment thesis is playing out exactly as we anticipated. It’s a combination of two things; we think is what’s going on here affecting the company. It’s not the weather and all this dog ate my homework kind of excuses you are hearing from management,” Tilson had said.

The two things that Tilson felt back then was that Keurig Green Mountain Inc (NASDAQ:GMCR) was facing increasing competition and that it had stolen numbers from its future earnings to make its present earnings look good, although he wasn’t very sure about the latter. Tilson had reiterated his stand that he was short on Keurig Green Mountain Inc (NASDAQ:GMCR) for the long haul and this was a rare opportunity.

Disclosure: None