Green Mountain, Sealy: Volume Movers

Green Mountain Coffee Roasters and Sealy were among stocks poised to move on above-average volume Wednesday.
Author:
Publish date:

BOSTON (TheStreet) -- Green Mountain Coffee Roasters (GMCR) was one of several stocks poised to move on above-average volume Wednesday after the company disclosed in a regulatory filing that the Securities and Exchange Commission is launching a probe into revenue recognition practices.

Green Mountain Coffee Roasters

said in a filing that the staff of the SEC's enforcement division informed the company on Sept. 20 that it was an inquiry and had requested documents and information. Green Mountain said it believes the focus of the inquiry involves certain revenue recognition practices and the company's relationship with one of its fulfillment vendors.

The SEC probe comes after Green Mountain's management discovered an "immaterial accounting error" relating to the margin percentage it had been using to eliminate the inter-company markup in its K-Cup inventory balance at its Keurig business unit. The company said that, as of June 26, there is a cumulative $7.6 million overstatement of pre-tax income, or $4.4 million net of tax.

Shares of Green Mountain Coffee Roasters are sliding by $4.53, or 12.2%, to $32.48 in the premarket session. The average daily share volume for Green Mountain is 2.57 million.

Elsewhere,

Sealy

(ZZ)

shares slumped by 31 cents, or 11.2%, to $2.47 in Tuesday's after-market session after the company posted an adjusted third-quarter loss of 4 cents a share, although that excluded a $23 million charge related to writedowns. Sales of $346.2 million were down 1% from a year ago.

Analysts had predicted Sealy would report a third-quarter profit of 5 cents a share and sales of $364 million, according to Thomson Reuters. The average daily share volume for Sealy is 269,000.

ModusLink Global Solutions

(MLNK)

shares fell by 87 cents, or 12.1%, to $6.35 in Tuesday's late trading session after the supply chain business process management company reported a fiscal fourth-quarter loss of 58 cents a share, ballooning from a year-ago loss of 9 cents a share. The average daily share volume for ModusLink Global is 173,000.

Chelsea Therapeutics

(CHTP)

shares were down 29 cents, or 5.2%, to $5.25 in Tuesday's after-market session after the company said it plans to offer $35 million in shares of common stock in a public offering.

The offering comes after Chelsea shares surged earlier this month. On Sept. 20,

Chelsea posted positive clinical study results

of its experimental drug to treat patients with neurogenic orthostatic hypotension, a disease characterized by a chronic drop in blood pressure upon standing. The average daily share volume for Chelsea is 1.56 million.

On the upside,

Hewlett-Packard

(HPQ) - Get Report

shares are climbing by 55 cents, or 1.3%, to $42.17 in the premarket session after the computer company said during its annual analyst meeting on Thursday that it expects fiscal 2011 earnings of $5.05 to $5.15 a share on revenue between $131.5 billion and $133.5 billion.

Analysts surveyed by Thomson Reuters expect HP sales of $131.42 billion and earnings of $4.99 a share. The average daily share volume for HP is 26.5 million.

-- Written by Robert Holmes in Boston

.

>To contact the writer of this article, click here:

Robert Holmes

.

>To follow Robert Holmes on Twitter, go to

http://twitter.com/RobTheStreet

.

>To submit a news tip, send an email to:

tips@thestreet.com

.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.