There is reason to believe JVA is not only an acquisition target but is actively undergoing due diligence by the purchaser. They have incentive to squash the stock price which will save them apprix $10 million with a lower buyout bid. JVA has been going down for 7 months and my strong belief is the pending buyout is responsible for that. JVA should easily be trading at $5 based in this earnings report.
You mean other than the fact they more than doubled their profit from last quarter and increased margins significantly and expect that to continue in 2016?
How does a $20 million company landing a contract with one if the world's largest retailers be considered "meaningless"?
The stock price started dropping 7 months ago, 3 months before this quarter even started.
Unless someone had access to a DeLorean and a flux capacitor, the stock price has been dropping due to manipulation and not knowing earnings would be bad before they even started.
I guess I wasn't clear. There's 2 phases to the buyout process, the one before it is publicly announced and after. I was referring to the buyout process taking more than a year BEFORE it is announced and before all parties agree upon termis and conditions.
Once the buyout price is made public, I expect the deal to close at lightning speed, in only 2-3 months. That would be DTS8's preference to limit the number of counteroffers from potential other bidders.
We are still in the initial phase of doing due diligence, getting financing into place, looking at all JVA's existing contracts, etc. That's the part that can take time and I've seen it last over a year with similarly sized companies to JVA. After the announcement, though, everything will move very fast.
I'm not telling anyone to buy this stock. I pretty much said it was doomed to purgatory in July and that it would be under constant manipulation lower until 2 weeks before the buyout bid, which may not happen for a year since I first noticed it. All I'm doing is explaining why the stock is going nowhere but down. If you would read my actual messages instead of applying your false sense if reality, you would see I've been warning everyone the stock was going to go down without much resistance but it was manipulation that was causing it.
When JVA first announced the buybacks in September they would have retired 8% of the shares. Now that same money retires about 15% of the shares
When the stock reaches $0.50, their $3 million buyback will be able to buy the entire company.
Or, you could just play Powerball. Odds of making money are the same odds as owning JVA.
Manipulator won't let this stock go higher no matter what. JVA falls 70% of the time since July on no news.
Where is the SEC? They don't care and neither does management. They'll be able to buy back shares in the $2's.
This stock is spiraling out of control. The only action the company takes is removing my posts because the truth hurts.
Great but can't find this "news" anywhere. Would be great for the stock if this can be verified.
"The stock contiued to suffer" That is exactly what I have noticed to small cap companies. Somebody is purposely forcing JVA's stock price lower so they can lower their buyout bid. Everyone that calls me crazy doesn't realize that JVA's market cap has fallen about $10 million since July which is when I first noticed the manipulation. People may not think companies would do something illegal to save $10 million that they KNOW they will get away with due to the SEC's incompetency and not caring about small caps but I can assure you this absolutely happens and is happening to us here, right now.
In my experience buyouts to take even small companies private can take a year or more. There are a load of legal issues, due diligence, and then dealing with the states of incorporation and their takeover laws. I first noticed the buyout process starting in July so it may not be until next July that an agreeable buyout price has been approved by all parties and it is made public. Remember also that there is more than just DTS8 here. In October, DTS8 hired a financing company that specializes in acquisitions so they are a big part of this process as well.
"Douglas Thomas, CEO of DTS8 stated “We are making good progress on the list of requirements to closing on this proposed acquisition. On completion, DTS8 will become one of the first, U.S. based coffee companies, with roasting facilities and distribution networks in both the U.S. and China which bodes well for the future of revenue growth at DTS8.”
DTS8 said they are buying a wholesale coffee roasting company located on the east coast with an extensive distribution network. In other words, JVA.
Another thing that will happen is lawsuits will be waged all over the place as soon as a bid is made. The company has a fiduciary responsibility to give the shareholders the best price possible and the fact that the stock was $5.50 as recently as June, any offer not in excess of that will be met by severe litigation. The Gordon's will have to describe the buyout/privatization process in significant detail to the satisfaction of the plaintiffs as to why a higher price wasn't fetched.
I doubt they were planning to take it private themselves. My belief is they wanted to be bought out by somebody when they hired Liolios Group. My belief is they stopped speculating on coffee futures because whoever was going to buy JVA would need to see a clean balance sheet and earnings that weren't tainted by trading coffee futures. Now that the price has fallen this far, they might consider taking it private if either the DTS8 falls through or someone is just pummeling the stock for the heck of it.
But for now, DTS8 has hired the acquisition financing company, not JVA.
Our best bet for significant returns is that a bid to take the company private is made and a second bidder emerges. The 2nd bidder will have to make it's bid blind as they would not have yet had access to audited financials or completed any due diligence...but will be allowed to do so after making a counterbid.
The company will be taken private and he will likely continue to run the company as a subsidiary of it's new parent.
(Subliminal message: Chinese, oolong tea sold by Teton and new Chinese owner)
You could vote no to elect the current board when the proxy comes out for the annual meeting but it won't do any good. The Gordon's should fight for their company with PR's, even if only to reconfirm publicly that the GMCR contract is in place for long term. JVA has fallen much more than most companies because the company has been under attack for many months. The stock buyback is the only weapon I've seen them deploy thus far. There are many other things he could and should be doing.
This company is so freaking cheap it's hard not to buy more. But the Gordon's HAVE to generate buying interest with a good earnings report or showing meaningful growth that will lead to future good reports. I know what is happening here is frustrating, I have lived through it before and it can last up to a full year. We'd be much better off having the perspective buyer just go away and let the stock trade normally.
What I hope will happen, and it is likely in my opinion, is that the initial bid to buy JVA by DTS8 will be met by counterbids in the weeks that follow by JAB or GMCR or FARM. JVA supplies a good percentage of GMCR's coffee and it would be advantageous for them to buy JVA outright to get the best costs. A bidding war is the fastest way to unlock value here. My biggest question is when? DTS8 said on December 1 that their initial due diligence has been completed but how much longer til the offer comes?
It's not "dumb" to say it. This isn't me making up a thesis. I watch level 2 trading and everything changed starting in July. The trading became all manipulative. I won't bother explainng how again but I know exactly how and why it's done. I also said in July that JVA's stock price would only go down from here on out until 2 weeks before the buyout offer is made public. JVA has fallen from $5 to $3.50 after I said it and everything I said has come true. You will all be amazed when the offer is made public and will apologize for doubting me but the sad thing is the missed opportunity for you to believe me and learn what I know in the process. This happens WAY more than you can ever imagine to very low float, low volume companies. The SEC is clueless or just doesn't care so nobody stops it from happening.