Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of specialty coffee brewer Green Mountain Coffee Roasters
So what: This type of announcement typically leads to pain for investors, but accounting issues have weighed heavily on Green Mountain's shares since September, when the SEC launched a probe into the company's financials. Green Mountain said the adjustments should reduce past earnings by only about $6.1 million to $6.5 million, or $0.04 to $0.05 a share, appeasing investor fears of a nightmarish outcome of the inquiry.
Now what: While today's news resolves some of the uncertainties surrounding Green Mountain, it's still too pricey for this Fool to take a chance on. Even with recent accounting worries holding it back, the stock has more than quadrupled since 2009 and trades at a forward P/E of 30. Green Mountain's sales have certainly been booming, but at the current valuation, increasingly fierce competition from the likes of Starbucks
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