NEW YORK ( TheStreet) -- After Green Mountain Coffee Roasters (GMCR - Get Report) announced the planned restatement of financial earnings for several fiscal years last Friday, TheStreet spoke with our Market Movers portfolio manager Ken Shreve about whether the stock was still a good trade and whether more accounting issues should be expected.
TheStreet: GMCR has restated its financial statements for a number of fiscal years and quarters in light of the recent Securities and Exchange Commission investigation into its revenue recognition practices. Should we be bracing for more accounting issues ahead?
Shreve: "You know, I don't think so. I think this resolution came much quicker than Wall Street had anticipated. The news could have been much worse. They found some discrepancies that looks like it's going to impact earnings, by 4, 5 cents a share. So judging by the stock's reaction on Monday, I think it was up close to 18% -- its technical picture went from looking really, really bad; there were clear signs of institutional selling. Investors were worried this was going to be a really long, drawn-out process -- but the quick restatement most likely means this SEC inquiry is going to end as an informal one. It's peeled away a significant amount of uncertainty in the stock and I'm more positive on the stock certainly than I was last week."
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