Green Mountain Shares Sink as Analyst Raises Concern on Possible Long-Term Margin Issues

Shares of Green Mountain Coffee Roasters GMCR are down nearly 3 percent Monday morning following some concerning comments from research firm Detwiler Fenton. Detwiler Fenton was cautious on Green Mountain over the long-term given potential margin pressure from competition and higher coffee prices. The firm pointed out K-Cup sales by Starbucks SBUX over the last month were discounted "aggressively." Detwiler confirmed promotions will not likely hurt Green Mountain or Starbucks as price reductions are often used later in the quarter to drive volume. Starbucks shares, meanwhile, are down 0.2 percent to $58.96 at last check.