"Consolidation." The big companies are always looking to take over the smaller companies. JVA is cheap.( Only a $46 million Market Cap.) JVA makes money. They just doubled their quarterly dividend. They have over a dollar a share in cash. I'm not saying a take-over is a "lock," but I am saying it is certainly a possibility.
Silver- Here's one of the few stocks I'm long; AVF, an AIG preferred issue.
They pay a good dividend of 7.5%, or 2.5 times JVA's 3%. The other thing you'll notice is the lack of volatility, ie- you're not likely to lose several times the dividend in capital losses when it takes a dive.
"you're not likely to lose several times the dividend in capital losses when it takes a dive."
I've been very fortunate over the years in the "stock market game." Losses don't scare me as long as my "gains" exceed my "mistakes" It's fun to make money doing this and it's fun just to play the "game". ("The next best thing to playing and winning, is playing and losing".).
Big companies are not always looking to take over smaller companies. It's just not true. They buy companies when there's a synergistic advantage. What advantage would owning the cow confer when you already can buy all the milk you want?
If the company were as profitable as you think then why have earnings declined during the last two years?
Why did the founders unload most of their shares? Could they not see the value that you do?
Do you think you're better able to value the company?
"Why did the founders unload most of their shares?"
Obviously they felt the stock was overvalued at the time of the sale. In 2011 and 2012 the insiders were selling shares between $9 and $30. A smart move on their part. I don't see any insider sales currently in the $7 range. In regards to earnings, the numbers seem to run in cycles. Overall, I view JVA's outlook as positive. When a company doubles its dividend, I have to take notice.