Shreve said he went long GMCR on Aug. 6 at $30.64 and plans on closing the position today. He'll look to sell into any strength for a small profit. "At worse, it'll be a break-even trade." Meanwhile, BGC Financial director and technical analyst Roger Volz said he's starting to monitor what represents short-term risk levels to see how prices behave on at test. "The next ledge of support can be found at $29.40 so we'll see.....at this juncture I'm in no hurry to explore a re-entry."
On Tuesday, Volz said the revelation about the SEC inquiry could be the beginning of a fundamental shift for Green Mountain Coffee Roasters -- "breathing life into the bears." Volz said it could be a game changer for the stock depending on how fast the company can get the inquiry settled.
He added that the timing of the disclosure could be better, as it occurs uncomfortably close to quarter-end.
"Now fund managers need to look at portfolio weightings, have to ask themselves whether they want to hold this position with this question arising," Volz said.On Tuesday, GMCR volumes on the put side had been light when the news unfolded. -- Written by Andrea Tse in New York.
>To contact the writer of this article, click here: Andrea Tse. >To follow the writer on Twitter, go to Andrea Tse. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV