T2 Partners' Whitney Tilson Wednesday reinforced talk of potential accounting fraud at Green Mountain Coffee (GMCR), saying in an interview on CNBC that he believes investigators will find something.
"We think they're going to find something," the money manager said. The Securities and Exchange Commission already is investigating the company, Tilson told the network.
Asked in a wide-ranging interview his view of Netflix Inc. (NFLX), Tilson said Chief Executive Reed Hastings of late has made errors, but that the company is on the right track in terms of profits.
Hastings is a "real visionary," said Tilson, although he has "clearly made some mistakes by his own admission" of late. He was wrong on the Qwikster fix but corrected that, said Tilson. Importantly, however, Hastings didn't back down on pricing issues, which was the right move, said Tilson. The move cost Hastings some subscribers, but that loss will stabilize, said Tilson, and Hastings will have a "higher profit company."
-Dow Jones Newswires; 212-416-2900