By the way, the coffee ETN JO fell 6% today which I attribute to Goldman Sachs' comments so they can get their clients into coffee cheaper. You can blame me for coffee falling too. I can handle it.
I first posted to buy JVA on March 10th when it was $6.30 and even with the pullback, it is still outperforming the overall Nasdaq index during that time. In 2011, JVA rose from $4 to $8 in 3 days and pulled all the way back to $5 before it superspiked. If you don't like volatility then you shouldn't invest in a momentum stock with only 6 million shares and has a history of being attacked by short sellers.
I'm sure if JVA goes back up I won't get any thanks from you. Just your blame. You can always put me on ignore.
He's an insider, he still has to report stock sales. Even the guy that had only 1,100 shares and recently sold 1,000 of them had to file with the SEC.
What he will NOT have to file is another SC 13D since he dropped under the 5% threshold.
But something unusual happened today. Premarket trading and at higher prices, premarket bids were coming in above yesterday's close. Then during normal trading, both the common and warrants traded on (relatively) heavy volume. It could be great earnings. Though they won't be announced until mid May, the quarter ended March 31st so they should have a good idea about earnings. We also now know the BOD heard a proposal from Stephens back in the November timeframe, supposedly about a merger/buyout/privatization/acquisition.
Whatever happened today, there was definitely increased activity on the buy side for as yet not public information. The drilling of the well was announced yesterday morning and didn't generate as much trading interest as "something" did today.
Markets had an amazing reversal on very crazy action this morning. People have been looking for capitulation, a large drop on heavy volume, and a reversal from that to signify the market bottom. Today felt like it happened. Not specific to JVA but hopefully means an end to the drop in the overall markets for a while.
I noted this about a month or two ago, but FPP has basically been in a triangle consolidation pattern for 10 YEARS. The price has oscillated between the narrowing triangle lines for a very long, long time. I don't have an exact price, looks to be around $5.20 or so but if it hits that, that would be the first time in 10 years it has violated this narrowing pattern.
Also notable on the chart is that the monthly bollinger bands are the tightest in over 10 years...and by a wide margin. Tight bands are a predictor that a breakout, either up or down, is looming. The tighter the bands and the longer they are tight, usually the greater the breakout. That is what has happened here, they were very tight for a long period of time.
Something big may be coming. I can see it in the charts and the price action lately suggests it may be starting.
I'll put in on my radar. Right now with the markets in freefall, I'm going to sit on the sidelines with what I currently own.
My current best recommendation is JVA, they are a coffee roasting/distribution firm. Reason I love them is their earnings tend to go higher along with the price of coffee, and coffee prices are up about 80% in the past 3 months due to the worst drought in Brazil since at least the 1950's. Unfortunately the CEO sold shares on April 10th and that is causing a selloff in the stock but I contend he sold for tax purposes (based on the dates he sold) and it nothing relating to company issues. I see very large blocks of JVA being bought today since it's fallen from $8.50 to $7...but still higher than the $5 it was in February. I'd hold off buying until markets stabilize.
JVA had contracts to buy over 1 million pounds of coffee around $1.20...as reported after the last earnings. Also, JVA had inventory of $9 million in coffee (priced around $1.20) which has now gone up in value by over $6 million at current coffee prices.
I've seen several large 10,000 block trades being bid that were filled and other large bids too. Somebody is accumulating shares at these very low prices.
Russian troops have been seen on the ground in eastern Ukraine, that is further unsettling the markets to correction levels and everything is getting flushed. Has nothing to do with coffee consumption but it's definitely impacting JVA's price here and the majority of stocks at this point.
FPP has been trading at premarket, up to $4.92. With this particular stock, that almost never happens. When it does, it usually only happens when somebody knows something before the public finds out.
First of all, I don't appreciate any personal posts. If you want to discuss this, respond on topic. Please remove this.
That said, PEOPLE STILL WRITE CHECKS?! OMG! I have the IRS take the money electronically right out of my account. Most brokerages offer banking and checking as well. It takes 3 business days for stock transactions to settle. So if he sold on Thursday, April 10 (which he did), those funds would settle on April 15th and can be pulled electronically by the IRS.
Why didn't David Gordon COO sell? Since your assertion that Andrew Gordon sold because he knows the EPS for next quarter, David Gordon knows too and he didn't sell. Besides, the quarter isn't even over yet.
Now remove this post and next time, respond to an actual post instead of getting personal.
I had to sell stock on april 9 and 10 to pay for my hefty capital gains tax due on the 15th. I sold stock i really wanted to keep. Andrew gordon has no other substantial holdings to sell to pay for a tax bill so he may have been forced to sell jva stock.
Nothing else makes sense. Coffee prices rising, jva would keep going higher. The fact that he sold stock at the very last second off the tax deadline is too coincidental. If there were a problem with the company, david gordon would have sold too.
You do not know how much money andrew gordon made last year. Other than jva, he dies not reveal any of his personal investments. He could have made millions last year, and so could i. He very easily could have made around $3 million last year and had to pay $1 milion in taxes.
The point is, david gordon did not sell so i stand by my assertion that this was simply a tax sale. If andrew or david sell jva in the days and weeks to come, then i may think differently.
If such bad news is coming, why didn't David Gordon, COO and brother of the CEO, sell HIS shares?
In the past, the brothers almost always sell their shares together and on the very same day. However, David Gordon did NOT sell his shares this time. Check the SEC filings for yourself, they almost always act together.
I have contended that Andrew Gordon, CEO sold shares to pay for taxes. Why? Because he sold on the very last day that his sale would settle in time to pay taxes on April 15th. He could not wait even one day more to sell shares to raise cash to pay the IRS or he would have been late.
Think about it. The short sellers would have you believe that really awful news is coming. If that's the case, then David Gordon COO would have sold his shares too because he knows what his brother knows.
I'm even MORE convinced now that my tax selling theory is right and that nothing is wrong here. IF David Gordon sells shares in the next few days I will revise my thesis but for now, I believe I am right.
thestockinvestor, it just doesn't make any sense for the CEO to sell. With the rise in coffee prices, if he didn't sell the stock would be well over $8. He personally pounded the stock lower on low volume last week and it would have soared today with coffee prices. Had he waited even a week or 2, he would have been able to sell shares for a lot more money.
He must know this which is why I am still convinced that he HAD to sell to pay his taxes.
He waited until the last possible day to sell. April 10th was THE ABSOLUTE last day you could sell stock and have it settled by April 15th when money to the IRS is due. Andrew Gordon sold on April 10th. Coincidence? I don't think so.
Unfortunately, he's not under any obligation to tell us why he sold, even if it was to pay taxes which would make us all feel a lot better and makes sense. Naturally people are going to assume the worst. I'm sure short sellers are pounding this right now which is why I think a short squeeze is coming soon. Fundamentals are really good here.
Now, if he sells more shares in the coming days, I'll question whether it was simply to pay his taxes. It's still painful to watch, this stock should be in full blown bullish mode.
CEO sale happened to be the very last day that stock can be sold (and settled) to pay taxes by the April 15th deadline. I and a lot of other investors had to sell stock recently to pay our capital gains taxes since last year's market was up 30%. This could also explain the overall market selloff to a certain extent as people locked in gains from their big winners while having to sell to pay taxes.
That said, I cannot read anything into the CEO's stock sale. The timing was absolutely perfect for an April 15th tax sale so that's my guess.
Well, the company is planning a $1 million buyback as they said the company is undervalued. Won't see a filing on it but may receive updates from time to time on if/when the buyback was completed.