The analyst could simply back out the losses and figure out what the earnings would have been. Since those figures are already broken out, that should be easy. The profit would have been over $1 million each of the past 2 quarters without the hedging losses. More difficult will be trying to forecast future earnings with the addition of the tea business and Stop & Shop stores. Gordon said each of JVA's 300 customers already have tea offerings so the tea business could generate very meaningful growth in the upcoming quarters...though I'm not expecting a major contribution in Q3 since it was just launched in May. Gordon could have given the analyst some insight into what he is expecting.
As I watch notorious pump and dump stock NVGN get a 17% boost today simply by a positive analyst price target, I am anxiously awaiting JVA's first analyst coverage.
According to the CEO, on June 11th he said he had met with and had multiple conversations with the analyst who had been busy with their earnings season. CEO said (paraphrasing) "We should have analyst coverage in the immediate future."
Look for "Cafe Caribe" brand coffee at your local Stop and Shop in South Florida, or "S&W Premium" coffee at Walmart. Check online at your local Walmart to make sure they carry it, you can also order it from Walmart online.
Thanks, dad. We would be so lost without your words of wisdom. And if you really think I or anyone else here believes Carl Icahn is buying and posting here, you have no sense of humor. To be fair, whoever that imposter is, volume has increased pretty dramatically every time after he said he was buying more.
That's what I think too. The price was worked downto 4.99x5.00 and the majority of volume occurred between those two prices. Kind of ridiculous to have about 60,000 shares trade between a $0.01 spread especiaaly given only 6 milkion shares outstanding and a float much smaller than that. It felt to me like an agreed upon price.
Hey Carl. When you are done buying JVA, can you send out a tweet about it? Let me know before you do so I can put my life's savings into it.
Good. Maybe the price will go back up when the heavy buying stops. ;-P
Feels like institutional buying. There are a lot of 100 share trades at the bid working the price down, then bigger blocks at the ask. Big blocks keep getting bid all day. Based on the volume and type of trading I am seeing, it feels like an institutional investor is buying a position.
Last qyarter, Dacid's Tea had slightly lower sales than JVA and a much larger loss. Yet the company has a market cap of $540 million vs $32 million for JVA. The tea space is hot right now and JVA is ridiculously undervalued to others in this space. Any success with it's newly launched Teton Tea business will significantly raise this company's value imo.
You do not know the facts. JVA just took a one-time multimillion dollar loss last quarter to end their speculative trading in coffee futures. In fact, that trading has caused two straight quarters of losses that otherwise would have been profit. Since thiis program has ended, JVA management is now focused on their core business as they should have been all the time.
Q3 will see the following improvements in earnings going forward:
1. No more large gains/losses from speculating in coffee futures. This makes sales amd earnings more predictable
2. Analyst coverage is coming "very soon" according to JVA management. Currently, no analysts are following the company.
3. Sales from their new tea business which was launch in May will start to appear in Q3 earnings. Tea has about double the margins from coffee.
4. Sales from selling it's branded coffee to 280 retail stores from a national chain will also start to appear in Q3. This was a brand new agreement announced only weeks ago.
This is why many of us here are more confident than ever in JVA's future results. These are the facts, and the high P/E is an anomaly from one time charges canceling what has been a cancer with this stock and it is finally gone.
About 3,000 shares have been bought over the past hour, each at $5.0886. Looks like the Mm's are causing this decline, unless someone other than MM's can place orders to the ten thousandths of a cent.
Don't bother, a lot of shorts showed up yesterday in unison and this is one of them. There is probably an institution (due to the road show) that wants in cheap that is responsible for it.
Check the message board, new post lol. He is obviously not the real Carl Icahn, icahn enterprises would have as much interest in buying JVA as a T-Rex would have in going out of his way to eat a fly. However, when imposter Carl Icahn on this board said he was going to buy, the price and volume spiked.
Shorts don't matter right now. There was a large buyer claiming to be Carl Icahn Enterprises and since his buying has stopped or slowed down, the stock price is drifting.
What does matter is the effect on earnings from the addition of Teton Tea, selling it's branded coffee in 280 additional retail sales, and the impact of cutting back on speculating on coffee futures without another writeoff which happened last quarter. Also, it would help if JVA can get investments from institutional buyers durung their road show.
Could be another surge starting next week if institutions start taking positions. Very compelling stock at this valuation given the sales growth drivers that will start to become evident in the Q3 earnings release.
Well now it becomes easier. Since we can take the big hedging gains/losses out of the equation, we can finally focus on sales and earnings. Net income of $2 million quarterly, easily doable with the addition of tea and a national retailer, will yield about $100 million market cap or roughly triple the stock price. We won't know until Q3 whether that is an achievable target but given the last 2 quarters of $1.8m and $1m profit minus the hedging losses, I think $15 stock price is very possible as long as they execute to reasonable expectations.
Perhaps Carl Icahn the imposter is right. Maybe they are walking this up to $10 but slowly so it doesn't draw attention. Considering it's been squashed for 2 years, a steady climb is way overdue.
I don't think it's unreasonable at all. Sales the last 2 quarters were $38m and $30m. Net profit was $1.8m and $1.0m if you take away the hedging losses. So sales of $40m and net profit of $2m are very possible when factoring in the new tea business and 275 additional retail stores. 4 quarters of those numbers would yield about $15/share.
Whatever happens, the good thing is we can actually start forecasting results for the first time and talk about a growing business as opposed to gains or losses from gambling on futures contracts. Also, my expectations are meaningless, especially considering an analyst will start covering the stock in the very near future. They will have had discussions with management...it will be interesting to see if they just give a price target or whether they estimate sales and earnings for upcoming quarters.
In Q3, sales from Teton Tea and from 275 Stop & Shop stores will be reflected in earnings for the first time. Also, large hedging losses/gains will no longer be dismissed by the investment community.
If quarterly sales approach $40m and $2m net, this is a $15 stock. They should start to approach those numbers in Q3, I think it is doable.