Yeah i notice we haven't seen that idiot who shorted in the $6.80's on the board this week. Wonder if he's covering now (wise) or waiting for $10+. Coffee prices up again today. Appears to be a breakout above $2 now. Traders are going to look for a way to profit from this coffee price surge. When they find JVA, stock could double in a week.
The situation really hasn't hit mainstream media so it's flying under the radar. Part of the reason is Dunkin Donuts and Starbucks keep a large inventory of coffee beans...I've read that in the case of Starbucks, they have an inventory that would last a year. But they can only hold off buying for so long.
Very soon, the looming coffee shortage will become very well known. McDonald's will likely be first, they will have to cancel their free coffee program. Then Dunkin and Starbucks will announce price increases but apologize.
The global forecast is for demand to outstrip supply by 11 million bags of coffee this year. That will cause coffee inventories around the world to reach dire levels. Since next year is forecast to be even worse than this year since the tree damage that was caused by the drought takes years to heal, the surge in coffee prices will likely be historic....and prolonged. That's what happens when you have the worst drought since records were kept followed by a monsoonal El Nino which is likely to occur.
If JVA plays their cards right and hedges properly, their earnings should skyrocket. I think that will happen because unlike past years when coffee prices spiked and fell just as quickly, I see prices going high and staying high which should increase revenues, and earnings, significantly. JVA could go parabolic if that happens, as it should.