So GMCR missed earnings yesterday and the stock tanked 40%. A surprise? Not really. GMCR displayed a combination of factors, which has been identified as bearish by academic research (Drake, Rees, Swanson, 2010): "we find abnormal returns (1.11 percent per month) from a zero-investment strategy that 1) shorts firms with highly favorable analyst recommendations but high short interest and 2) buys firms with highly unfavorable analyst recommendations (sell signal) but low short interest (buy signal).".
In the case of Green Mountain, 9 out of 12 analysts had a buy rating on the stock (according to Yahoo Finance). Only one rated the coffee company a "sell". Short interest on the other hand was extremely high: 23% of stock was held short according to finviz.com.
I'm amazed how much analysts are often behind the curve and frankly, I do not understand why.