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NEW YORK (TheStreet) -- Shares of Green Mountain Coffee Roasters (GMCR) are jumping amid what observers believe is a flurry of short sellers closing their positions.

Shares of Green Mountain Coffee Roasters stock have jumped 3.8% to $37.61 in early afternoon trading.

Ken Shreve, manager of


Market Movers model portfolio, said Green Mountain Coffee Roasters (GMCR) stock is one with a big short position -- as of Sept. 15, about 22.1 million shares were held short.

"The stock normally trades about 2.5 million shares a day, giving it a days-to-cover ratio of around 8.8, which is on the high side ... recent strength could be attributed to short sellers closing their positions." In order to close their positions, these short sellers would, of course, have to buy the stock back.

Shreve said these short sellers don't want to be caught short at the end of the third quarter because GMCR could benefit from a concept known as window dressing, wherein mutual fund managers buy a strong performer just before the end of the quarter to make their portfolios look good.

BGC Financial director Roger Volz said the GMCR chart has been "a monster since its breakout in 2007 with split involved." Volz pointed out that the stock has had two three-for-one splits since 2007.

Currently Volz is working a new long-term GMCR chart range of $33.50 to $44, which then runs to $50.

He added that the


(NFLX) - Get Netflix, Inc. Report

chart has been resembling the GMCR chart.

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"GMCR is the K-cup monster...been in acquisition mode....what Netflix has done for home entertainment GMCR has done for coffee lovers," he said.

-- Written by Andrea Tse in New York.

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