Shorting Green Mountain Coffee Roasters (GMCR)

GMCR was at the center of controversy and the target of much short selling almost two years ago.  You can read about that here and peruse the actual presentation here.

It tanked spectacularly since then, and has rebounded almost all the way back.  It looks like a good technical short to us now:

What's not shown on the chart above is that the MACD in the weekly time frame has recently turned bearish for the first time since that year-long bounce began from under $30. 

We're going short GMCR and will cover on any close above the 2013 intra-day high of $83, roughly 6% higher than the current close of $78.60

To us it seems a good probability that the stock will decline to $60, or over 20% lower.  An eventual drop far lower would not surprise us at all.  Time will tell.

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