Why the Shorts Are Still Circling Green Mountain Coffee

In today's edition of "Talking Stocks," analyst Austin Smith takes a look at why Green Mountain Coffee Roasters (Nasdaq: GMCR  ) still has a 20% short interest. After falling so much in price, some could easily claim that the company is wandering into value stock territory, and with huge growth rates to boot. But the looming dark cloud of patent expirations still hangs menacingly over shares. With grocers from Kroger (NYSE: KR  ) to Safeway (NYSE: SWY  ) now selling their own private label K-Cups, the doom and gloom may have come earlier than expected. At these prices, Austin isn't willing to go thumbs-up or thumbs-down on the company since the future remains uncertain.

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Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Starbucks. Motley Fool newsletter services recommend Green Mountain Coffee Roasters and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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