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 Rule Breaker pick Green Mountain Coffee Roasters
So what: Einhorn, president of Greenlight Capital, has shorted the K-cup maker for a variety of reasons, including a "litany of accounting questions," outpaced capital expenditures, and "looming patent issues." In addition, Whitney Tilson, who made headlines with his public bearish debate with Netflix
Now what: Green Mountain has been on a streak for the past couple years, and if you bought in when this stock was first recommended by our Rule Breakers team, you'd be sitting on an 818% winner. Einhorn believes that the company's earnings are "too good to be true." Whenever you have a stock that has a run like this and skeptics pop up, it's always good to check your initial investment thesis and see if it still holds. Einhorn is known for capitalizing on the financial crisis -- he was short a handful of financials, including Lehman Brothers -- so his statements are bound to draw a lot of attention.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters and Netflix. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. 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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