February 11, 2014

Kass smart trade in shorting Green Mountain Coffee Roasters

Doug Kass made a nice profit off of the furious after hours surge in Green Mountain Coffee Roasters shares on Wednesday Feb 5, 2014. The cause of the surge was attributed to news that Coca-Cola was taking a 10 percent stake in Green Mountain.

Kass then wrote in a note to clients on the next day Feb 6, "I shorted Green Mountain stock at $128 a share at around 6:00 p.m. EST last night". 

Kass said the high short interest compared with average daily volume meant that Green Mountain "should have been a nonstarter for me to short," because a sudden move would bring out lots of short-sellers scrambling to avoid more losses, pushing share even higher.

The stock is now trading around $107, much below where Kass shorted it at $128.

via http://www.reuters.com/article/2014/02/06/us-greenmountain-cocacola-shorts-idUSBREA151SC20140206