THIS IS HUGE NEWS - FINALLY WHAT WE'VE ALL BEEN WAITING FOR. EXCLUDING HEDGING THE BUSINESS EARNS $0.50-$0.60 EPS (WITH THEIR IMPROVED MARGIN STRUCTURE) AND SHOULD GROW 10-15% WITH AN 8-10% FCF YIELD AT $5/SH. THIS WILL CLEAR THE DECK FOR THE STOCK TO RECOVER TO $7.00. I'M BUYING TODAY.
“We are about to embark on a transformation in our business that phases out hedging and short-term trading of coffee futures and options contracts to focus more on our core businesses,” said Andrew Gordon, president and CEO of Coffee Holding. “Given the volatile nature of commodities markets, these trading programs have led to inconsistencies in our bottom line, obscuring the success we have realized with our wholesale green coffee distribution and the sale of branded and private label products. We expect the reduction of trading will lead to more consistent results, and represents one of our first steps to enhance shareholder value.