So what? It's an article no one will read.
The stock was rallying on a 300% increase in earnings q over q, until Reuters called the GMCR contract into question. The CEO has not issued one statement to address those concerns. This is what matters, not giving an interview that nobody will see.
Because Q4 '15 and Q1 '16 earnings are only 45 days apart, JVA has been in an extended quiet period since December 2015. Neither the insiders or the buyback has been allowed to be bought since that time, and the price has eroded 25% in less than a couple of months for absolutely no reason other than nobody has defended the price drop with buying.
After March 4th or whenever earnings will be announced, insiders and the buyback should be in full swing.
However, I am not defending management. There is plenty they could have done to generate buying interest during this quiet period, not the least if which would have been issuing a PR solely on being added as a vendor for Walmart, and then to state that GMCR is not being lost as a client despite the inference by Reuters. I as CEO would have tried to set the record straight about gmcr if they could legally construct a statement that would free them from liability if somewhere down the road they were to part ways.
This is happening for one reason, and that is so so someone can buy JVA at a cheap price. The company is $12 million cheaper today than when I first noticed this happening in July. Someone may have spent about $500,000 during that time trading this lower so obviously, it is more than worth it to them.
As I have reported countless times, the majority of the manipulation comes in the final 10 minutes of each trading day as they can maximize our pain for the least amount if money. They will throw a big block of shares at the ask earlier in the day to keep the price from going too high, then pound it into submission at the close.
2 days ago, an entire week of stellar gains on high volume was wiped out in 90 minutes on absolutely no news.
I have been relentless in trying to get higher powers involved to go after the criminals that are doing this. Personally, I would have had the market maker replaced many months ago because I'm not so sure someone doesn't just pay them a huge sum of money to do this for them. Though my voice has been clearly heard by management, only they know if they've taken this to nasdaq or the SEC for review.
In any case, I hope the buyout offer is coming soon. Since DRS8 isn't the buyer, the next likely candidate is JAB who bought GMCR. That deal makes all the sense and I have theorized for a long time that GMCR (now owned by JAB) would someday by JVA.
Replace the word Apple with Hillary.
There, that looks much better.
In the past, when JAB Holdings gets invokved, the terms.of how long they go before paying their vendors sometimes increases. They may wait anywhere between paying for 60-120 days, whereas the currebt terms are 30 days. Since annual sales to GMCR exceed $60 million, this can be a big deal to a company without a cash hoard. If JAB increases the payout time from 30 days to 60 or more, JVA may not even want to be a supplier to GMCR.
However, though that would slash sales, the margins to GMCR are razor thin anyway and may actually even boost bottom line earnings. This is all speculation but Andy is simply stating the loss of GMCR as a possibility due to the unknown. For all we know, GMCR may actually increase their purchases from JVA after their sale is complete. Or, they may even buy JVA outright.
They could buy the entire company for what a 2 minute spot on the Super Bowl costs. At this rate, soon a 1 minute spot.
In July 2015, JVA's short interest went up 150% in a 2 week period and the stock fell for 9 straight months starting immediately after that happened.
Just before JVA started rising recently from $3.10 to $4, JVA's short interest fell to it's lowest levels in a very long time.
While short interest isn't huge here, it's clear to me that when JVA's short interest went up 150% in 1 period last July, they knew the stock was going to fall which it did for 9 months....and now the very low short interest and the stock rises means they knew the stock was going to start rising.
What doesn't show up in those numbers is naked short selling and I bet that was rampant here to drive the price lower. Legally only the market specialist is allowed to naked short but in reality naked shorting is widespread and the SEC poorly enforces it.
At any rate, the climate for JVA is now bullish and I hope the stock price rises as quickly as they took it down.
But JVA was trading at $5.50 in June. Why should they sell the company for $5.50 when it can trade higher than that just by telling these rats to go away? It would be so easy for Gordon to generate buying interest if he had a single thread of marketing savvy. He absolutely does not.
I maintain firing Gordon and replacing him with any savvy stock guy could turn this around too. It's one thing if short interest were rising but it's not. The stock is now almost half what it was in June and short interest has hardly moved. Any competent CEO would find a way to communicate with the public and generate buying interest. oil companies on the brink of bankruptcy are far outperforming this. Gordon has had a long time to figure this out and has failed miserably.
All the selling pressure happens in the final 10 minutes. JVA falls off a cliff every day at the closing bell.
Watch. 3,75 as I write this with 30 minutes to go.
It would be for the entire company. My guess is JVA would go private after the sale. DTS8 already has an existing licensing agreement to sell JVA's Don Manuel coffee in it's shops in China.
The reasons I believe DTS8 is the one buying JVA is that I immediately alerted everyone in July 2015 that JVA's trading turned 100% manipulative which meant a buyer was purposely driving down the stock price to buy the company at a much lower price than is deserved. For every $1 knocked off JVA's share price, the buyer saves $6 million. I said JVA's stock price would probably go lower for about a year until the buyout was announced.
JVA has gone up only 1 month in the past 9 months. This is criminal manipulation and has nothing to do with earnings.
I find it fascinating that JP Morgan's CEO bought $27 million of his own stock the night before the market selloff ended. Markets have gone up ever since and commodities have definitely improved.
When I heard on CNBC that he took an entire year's salary to buy back his stock while the markets were freefalling, my initial reaction was that the selloff would mysteriosly be over.
I have contended for many years that JP Morgan is one of the most corrupt companies in business today. They have not only been accused of manipulating markets but punished billions of dollars many times over for their criminal misconduct. A Senate report recently concluded that both JP Morgan and Goldman Sachs were responsible for commodity manipulation.
You have to wonder how oil falls from $105 to $40 in only 6 months during economic expansion and a bull market. More likely, JP Morgan and a few others orchestrated that to happen and make billions in the process.
You created a new profile yesterday and this is your first post? You are a troll and instantly on ignore.
Headline seen this morning on Bloomberg.
Global production will trail demand by 3.4 million bags in the 2015-16 season, Marex Spectron, a London-based brokerage, said in January. That’s up from a November estimate of 2.79 million bags. A bag weighs 60 kilograms (132 pounds).
Brazil’s stockpiles will fall to between 4 million and 6 million bags, the Coffee Council estimates. That’s near a record low. The supplies are set to decline because the country’s production hasn’t been large enough to meet domestic and export demand, Paulo Andre Colucci, a spokesman for the Brasilia-based group, said last week by e-mail.
Inventories are sliding elsewhere too. Stockpiles at warehouses monitored by ICE Futures have fallen to the lowest since 2012. Strong cash prices are discouraging suppliers from delivering beans to the exchange, said Hernando de la Roche, senior vice president for INTL FCStone in Miami.
Of course, this has nothing to do with the price of JVA stock. JVA will continue to go down due to manipulation until the company is bought.
Marketing genius. He gives an interview to a rag that nobody reads and you have to pay and subscribe if you want to read it. In the meantime, newsworthy events such as becoming an approved vendor at Walmart and about to launch sales there is buried in an earnings report this losing much of it's PR value. Then, when the stock rallies and is destroyed by a Reuters article calling their largest contract into question, he says nothing to address these concerns.
The stock is grossly undervalued because someone is manipulating it and the CEO has absolutely NO marketing savvy. I've never seen someone more afraid to say anything positive or negative about his business to the public. I may not know coffee but I wouldn't allow criminals to steal my business like this in broad datlight.