Green Mountain Coffee Roasters (GMCR.DL) is the investing Icarus of the last 12 months. Once a multibagger stock, Green Mountain couldn't maintain its lofty growth multiples and has crashed down into value stock territory. A combination of factors including slowing growth, mounting inventory, questionable management missteps, and very public short calls have all contributed to depress shares to less than 20% of their 52-week highs. Green Mountain's slide bears more than a passing resemblance to Krispy Kreme's (KKD) similarly publicized fall from grace. Both stocks became Wall Street favorites and couldn't maintain the growth commensurate with their multiple expansion after running up in price. Krispy Kreme became short-term focused with rapid expansion and pushing equipment on franchisees, and there is a growing belief that Green Mountain has done the same thing via channel stuffing and aggressive accounting.
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