David Einhorn Still Thinks His Green Mountain Short Can ‘Pan Out’
Hedge fund manager David Einhorn was on Bloomberg TV earlier today, and he was talking about everything from the U.S. economy to some of his most widely covered positions. As the news site pointed out, Einhorn called a U.S. default "unimaginable," adding that the situation is "embarrassing." Greenlight Capital's founder also shared his thoughts on his Green Mountain Coffee Roasters (NASDAQ:GMCR) short as well as the moderately sized long position he holds in Vodafone (NASDAQ:VOD).
Barron's was listening in to the entire conversation, and it noted that Einhorn still thinks Green Mountain can "pan out" on the short side even though it has had a great 2013. According to the Focus on Funds blog, here were his thoughts on GMCR:
The competition is increasing, their market share in their stores is declining. I think they’re going to miss on the earnings side some time in the next year. And I think people are going to wake up at some point and say these earnings are not what they appear to be.
So that's a bit surprising, we've got to admit, and Einhorn's thoughts on Vodafone were a bit more on script. He said that Vodafone deserved an "A+" for its recent decision to sell its 49% joint venture stake in Verizon Wireless to Verizon (NYSE:VZ).
Does that mean Green Mountain's three straight earnings beats get an "F" for destroying his short thesis this year?