In a story Jan. 24 about Green Mountain Coffee Roaster Inc.'s stock movement, The Associated Press reported erroneously that its CEO had been ousted over a stock sale. The company's founder and former Chairman was ousted for this action. The AP also reported that its patents are expiring. Two of its key patents expired in September, its other patents do not expire for several years. The story also was published using the incorrect style for KeyBanc in the extended version of the headline and in the first sentence.
A corrected version of the story is below:
Green Mountain shares up on upbeat assessment
Green Mountain shares climb after KeyBanc analyst says more opportunity still ahead
By The Associated Press
Green Mountain Coffee Roasters Inc.'s shares rose Thursday after a KeyBanc analyst gave an upbeat assessment of the company's near-term prospects.
THE SPARK: Analyst Akshay Jagdale said the market is expecting a price war over single-serve coffee pods will erupt following the expiration of key patents last September. As a result, many investors expect the company will lower its 2013 earnings estimates.
However, Jagdale believes there is a shortage of single-serve coffee products that will help Green Mountain. The analyst kept a "buy" on the company's shares and a $55 price target.
THE BIG PICTURE: Green Mountain was a pioneer of single-serve coffee in the U.S. with its Keurig machines and coffee pods. The company grew quickly but struggled as competitors began releasing their own versions of single-serve systems. Two of its key patents recently expired, opening the door for more competition.
The company has also faced a multi-year Securities and Exchange Commission inquiry into its accounting practices, and founder and former chairman was ousted after he made a stock sale that violated company policy.