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Coffee Holding Company, Inc. Message Board

  • wallstreetelite wallstreetelite Mar 23, 2012 1:48 PM Flag

    Falling Coffee Prices-Good/Bad?

    What is your oppinion on the falling coffee prices?

    >Does this increase thier profit margin because they're buying coffee cheaper?

    >Or does this hurt this business because they're selling the coffee lower to remain competitive?

    >>>The main question, does this company harvest the coffee and produce a finished product ready for brewing? Or does it just soley manufacture and produce a finished product?

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    • Trying to reason with grant reminds me of Upton Sinclair's famous quote; 'It is difficult to get a man to understand something, when his salary depends on his not understanding it.'

      Ie- deliberately ignorant.


      I have to say that while maintaining a core position of about 38k short I still manage to scalp a little every day just shorting the highs and then covering intraday. Today I sold 4k at 13.33 and bought back at 12.74. No need to pay IB to carry it.

      As long as JVA is silly volatile it's going to generate its own volatility just by attracting traders to do what I'm doing, both long and short.

      Have a good weekend.

      Oh how silly of me . . . I forgot that you're me and I'm you.

    • why do you try to make it more complicated than it is. Companies like Rothfos build/maintain relationships with growers. They buy coffee from them, mark it up, and sell it to JVA for their "services". JVA repackages/blends/roasts, then takes their margin and distributes it. Rocket science i tell you! That's why their GM% is only 6% and going lower as they grow their GMCR business. Let's not make JVA into some unique value-add importer.

    • I forgot to mention:

      I never argue with an idiot.

      Like I said it before, I'm here in passing, and I mere pointed out the truth.

      Unless you're SBUX that has the resources to own coffee plantations around the world, you have no other way to buy from the growers directly. You have to import through a dealer who works for a group of growers in a country/region.

    • The dealers buy from the growers. And JVA buys from them. What does that make them? A SECOND MIDDLE MAN. You simply proved my point.

    • Harvest??? No way. This company is a second middleman. They don't even buy from international growers. They buy from other distributors BASED IN THE US. That's why their margins are terrible. They provide minimal value on their green coffee distribution.
      Higher coffee prices leads to SHORT-term:
      1) higher margins in green coffee
      2) lower margins in private label/Branded
      So, the answer is that it hurts some biz and helps other biz. Net net it should help in the short-term due to their overall mix.

      • 2 Replies to coffeeprofosho
      • You know every time when this coffee "prof" posted, it full of lies and nonsense - typical self-claimed "expert" resides on those message boards.

        Let me quote the Business Description from the 10-K, the truth - the company has three lines of products, and they do buy from oversea growers:

        "โ— Wholesale Green Coffee: unroasted raw beans imported from around the world and sold to large and small roasters and coffee shop operators;

        โ— Private Label Coffee: coffee roasted, blended, packaged and sold under the specifications and names of others, including supermarkets that want to have their own brand name on coffee to compete with national brands; and

        โ— Branded Coffee: coffee roasted and blended to our own specifications and packaged and sold under our seven proprietary and licensed brand names in different segments of the market."

      • Hey coffeepro, although I try to avoid playing futures (same as I try to avoid trying to 'make' money in Vegas) I couldn't resist picking up 6 contracts this morning at 1.764.

        It's now 1.7805 and I'm up a penny and a half, or, $3,885 (the leverage is huge 1:37,500)

5.86+0.08(+1.38%)Aug 26 3:59 PMEDT