Green Mountain Coffee

by | Nov 15, 2011 | Videos, Stock Market Comments

Avoiding a big loss can go a long way toward improving the managing your 401k account or your investment portfolio in general. What we try to do at Mullooly Asset Management is manage the risk in your investments. As a fee-only financial advisory business, it is our goal to make sure your account is in the best shape possible.

Green Mountain Coffee (GMCR) really collapsed last week, after reporting earnings on November 9th. But the trouble with the stock price actually goes back (on the point and figure chart) to September. We strongly suggest you take a look at part 1 of this video, for a quick three minute refresher on sell signals and stacking the odds in our favor.

There is a pretty well known hedge fund manager (David Einhorn) who was also rumored to be investing in the NY Mets this summer. Now THAT could have been a colossal mistake. But this manager has been very vocal about potential problems at GMCR, Green Mountain Coffee. We’ll never really know the truth. But the chart action IS interesting, since the stock continued to weaken throughout an otherwise strong month of October for the stock market.

The thing about these charts, as mentioned in the video, is that we never really know WHY a stock is falling. All we know is that the price continues to fall. There can ONLY be one reason for that: too many sellers. They all have their reasons why they are selling (public, non-public and rumors, right?). It’s our job to pay attention. When a chart like this gives multiple sell signals, no buy signals in sight, somebody is making a move OUT of the stock. It really doesn’t matter WHY, right?

Take a few minutes to watch this video and see how the sell signals line up WEEKS before the real damage was done.


If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.

Please note this is an ANALYSIS, not a recommendation to buy or sell this fund. In fact, none of the securities analyzed represent past specific recommendations of Mullooly Asset Management.

Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.

All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.

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