What's With Green Mountain's Numbers?

On the surface, there are few companies more harmless than Green Mountain Coffee Roasters

. The company has built an image around warmth, nature and all of that fuzzy stuff. However, a report on Thursday suggested that could be something fishy about GMCR's numbers. According to

, GMCR's numbers often include troubling discrepancies. The article states that, “On September 28, 2010, Green Mountain disclosed that the SEC started an informal inquiry into its revenue accounting practices and relationship with a certain fulfillment vendor eight days earlier. On that same day, the company coincidentally reported that it discovered an accounting error involving its K-Cup margin percentages during the preparation of its financial report for the period ended September 25, 2010. On November 19, 2010, Green Mountain disclosed that it found four new accounting errors. On that date, the company said it would restate its financial reports issued from 2007 to the period ended June 26, 2010 to correct its errors and conceded that there were material weaknesses in internal controls.” The story continues. “On December 9, 2010, Green Mountain Coffee issued its 10-K report for the year ended September 25, 2010. That 10-K report included details of its restatements for various periods.” Of course, White Collar Fraud is not the first to question Green Mountain's accounting practices.

famously

, questioning GMCR's accounting, transparency and business practices in his October 17 presentation. That saw shares in Green Mountain slide from about $90 a share to $56. We should make it very clear that Benzinga is not accusing GMCR of anything, but rather conveying information and analyst's opinions. However, controversy like this does not exactly breed confidence with investors. Starbucks

remains a solid brand.

reported that, “Among the stocks rallying to new all-time highs intraday on Tuesday, Starbucks is under the sway of sellers just a day later, pulling back by more than 1% and closing lower for a second day in a row... No, the attention in this group at midweek was in the world of hurt Green Mountain Coffee Roasters has visited upon its investors, who saw their shares continue to drop below the 200-day moving average.” Again, GMCR might well be guilty of nothing. Just be aware that investors hate this kind of smoke. If you would like to be alerted to Green Mountain updates as they come out in real-time, signup for a

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