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Showing posts from March, 2011

Is Michelle Stacy a shrewd insider, a psychic or just plain lucky?

In my last blog post I asked the following question about Green Mountain Coffee Roasters (NASDAQ: GMCR) Keurig Division President Michelle Stacy:
Is Michelle Stacy a shrewd insider, a psychic or just plain lucky? Perhaps the people who designed and administer her purported 10b5-1 trading plan are geniuses?On February 14, 2011, Green Mountain Coffee stock opened for trading at $42.14 per share. At 11:00 AM Reuters reported:
Green Mountain Coffee Roasters Inc's (GMCR.O) shares fell as much as 4 percent after Starbucks Corp (SBUX.O) said it plans to announce a new product for the single-cup coffee market, a move that could threaten Green Mountain's dominance in the fast-growing sector. The stock price of Green Mountain shares dropped to a low of $41.53 per share in intra-day trading.

At around 3:25 PM (Eastern) that afternoon, Green Mountain Coffee shares spiked up from just under $42 per share to $45 per share. See the Bloomberg chart below (times posted on chart are Central time):

Green Mountain Coffee Roasters: The Foul Aroma of Michelle Stacy's Stock Sales

On Thursday, March 10, 2011, Green Mountain Coffee Roasters (NASDAQ: GMCR) announced a “strategic relationship” with Starbucks (NASDAQ: SBUX). On that same day, Green Mountain Coffee granted stock options to certain insiders at its “Board of Directors meeting simultaneously following the Company’s Annual Meeting of Shareholders.” On Friday, MarketWatch reported:
Green Mountain insiders miss big option gain
Options priced after Green Mountain stock jumps 41% in single day
SAN FRANCISCO (MarketWatch) —March 10 was options day for insiders at Green Mountain Coffee Roasters. Too bad it was the day the stock hit a record high and the options are presently worthless.Their latest batch of stock options were priced Thursday as Green Mountain(GMCR 58.86, -2.85, -4.62%)  shares ran up 41% on news the company had struck a deal for Starbucks (SBUX 36.56, -1.41, -3.71%)  to make coffee for its Keurig single-cup coffee brewers. Read Starbucks, Green Mountain brew K-Cup deal.According to filings Frida…

A Question for John Thaler About Green Mountain Coffee Roaster Call Options


To John Thaler:

Nice bet!  According to an SEC filing, sometime before December 16, 2010, your fund JAT Capital Management purchased 25,000 call options in Green Mountain Coffee Roasters (NASDAQ: GMCR) giving it the right to purchase 2.5 million shares at certain strike price. See below:
As of December 16, 2010, each of Capital Management and Mr. Thaler may be deemed to be the beneficial owner of 6,602,008 Shares.  This amount consists of 4,102,008 Shares held for the account of the Master Fund and 2,500,000 Shares which the Reporting Persons are entitled to receive upon exercise of options held for the account of the Master Fund. [Emphasis added.]Those options are quite a large bet for a fund with only $1.2 billion in assets.

Here’s my question

Did you purchase those call options on Friday, November 19, 2010?

Why I am asking the question

I’ve written a series of investigative blog posts, about possible securities law violations by Green Mountain Coffee Roasters (NASDAQ: GMCR), w…