During the last four years I invested my money according to the value philosophy. This was pretty rewarding as the returns were an average 12.26% per year, totaling 58.8% from beginning 2010 to the end of 2013. Unfortunately is value investing a time consuming job. If you want to do it right, you should put a lot of time into reading about companies. Not only consistently reading about the companies you are already invested in, but also reading about their competitors or about companies you might want to invest in at a later stage. This, however, has become impossible for me to do as I entered the last stages of my studies law and business economics. Therefore I sold most positions.

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On several occasions I wrote that I have trouble finding new bargains. In the beginning of 2014 however I found something different. Namely a way to gain when the share price of Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR, later in the article: Green Mountain) will have declined: buying Jan 2016 put options. In this article I want to answer the question why I want to ‘short’ Green Mountain.

Green Mountain Coffee Roasters Inc.

Green Mountain produces and sells single-cup coffee makers and produces and sells K-Cups (the cups to put into those coffee makers or brewers), this is comparable to the in the Netherlands more familiair Senseo machine. The K-Cups Green Mountain sells can contain their own coffee brands but they also have several license agreements with for example Starbucks and Dunkin’ Donuts.

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