That makes Fidelity's insider buying and selling activity a potential tell on whether the biggest owner of Green Mountain shares still has conviction in this stock.
Recent activity in the Fidelity funds shows that buying and selling "wash" when it comes to Green Mountain. Even though the last full quarter portfolio update from Fidelity is as of June 30, the funds each reported on their own as of the end of the Sept. 30 quarter. Fidelity Mid-Cap, which has the largest holding in Green Mountain, had sold a net 931,000 shares of Green Mountain. Yet Magellan had added more than 2.3 million shares as of Sept. 30. Contrafund had sold 139,000 shares and Fidelity Growth Company had no net position change in Green Mountain.
Of course, the Sept. 30 period pre-dates the value investing conference where Einhorn went public with his short in mid-October, so it's Fidelity's action from here on out that investors should watch for any "tell" from the fund giant that its managers aren't buying and selling individually, but making a conviction call -- either dump or buy on the dip -- in Green Mountain shares. What's more, Morningstar's Kinnnel said that with a stock like Green Mountain -- not a blue chip large-cap -- it is likely that Fidelity has one analyst who is the "conviction" decision-maker across all of its funds, even if the funds diverge on quarter to quarter buying and selling, and given the recent action in Green Mountain shares, this might be a time when the fund giant's portfolios all move in the same direction.
If Fidelity has upped its ante in Green Mountain during the third quarter -- which we won't know for a while yet -- it would suggest there is at least one big shareholder, the biggest in Green Mountain, who isn't running scared of Einhorn or one bad quarter, or the big inventory build at Green Mountain, and its massive spending plan increase. If, on the other hand, Fidelity starts dumping Green Mountain shares en masse -- or already has -- buying on the dip would put the average investor at odds with the one of the biggest fund companies out there."With 10% to 12% ownership in this stock it does mean that they
Eric Rosenbaum. >To follow the writer on Twitter, go to Eric Rosenbaum. Follow TheStreet on Twitter and become a fan on Facebook. To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV