MEMO TO GMCR MANAGEMENT

GMCR’s management team still seems puzzled as to why they missed on their sales estimate in Q2. They failed to provide concrete answers at the Janney Consumer Conference few weeks ago, and it seems they refused to discuss this at the Piper Jaffray Consumer Conference. Why? Is GMCR morphing into a bio-tech company? Are they planning on infusing Astrazeneca into their k-cups?

Full disclosure - I initiated my first GMCR short position in Q1 2011, and significantly increased my position in July 2011 (roughly increased my position 10x). This never was a ‘coat-tail’ investment; that said, I’m grateful to the Greenlight people for taking their views public last October. It takes courage, moral character, integrity, and exhaustively doing one’s own homework to go public with a position, especially a short position.