even worse management just uses the stock exchange listing to cash out of free shares they are getting each fiscal year. Once the Gordon brothers have sold enough shares they might just close the company as this is not a business which can be sold.
so - why is the stock cheap here ? Where's the value in the business ? Buying some coffee and selling it for a pitiful margin to a single customer doesn't seem like a valuable business to me at all.
no - REGI warning - but they are actually located in Iowa and in the biodiesel business so there's no real correlation here
simply I don't see the investment thesis here - you guys are betting on cheap inventory leading to huge earnings next quarter but what will happen after that ? if you think they will put up a decent quarter buy the shares the day before they report but don't wait for this to move to the $5 area before
it doesn't help that much of ONE retail investor is considering to buy some shares - the stock needs strong support to stop the decline but of course there is none - would expect this to move much lower with the market
will just cover today's short later today - still looking for $2.50 going into the next earnings release...I guess there was one permalong on this board here who managed to see through the bs and sold right after the earnings release
just look at BAC or INTC or YHOO - shortsellers are leaning heavily against them this morning and might not take long to succeed... what do you think will happen to JRJC then ? Momentum stocks use come back more than 70% on average once they have fallen from grace - there's much way to go boys....
who cares - I was straight on about this shame of a company while your losses are mounting every single day
stock at day lows with market at day highs - this will easily be down double digits later today
I don't feel any pity for you guys staying long while ignoring the facts
put on a small short position at $6.88 - should have stayed with the original short after earnings were released...what is for sure I will NEVER take a long position in this company as it is simply not investable given the business characteristics
looking to cover around $3.50 later today
I forgot the ongoing market weakness... with no institutional support this might fall much lower than some of the permabulls here might imagine
as the stock is currently stuck in the midst of heavy insider selling and falling coffee prices
apart from that the shares seemingly aren't worth an investment other than swing trades as the company's fate is almost solely dependent on coffee prices
given the large amount of shares offered compared to the average trading volume there is huge potential for the stock price to move much lower. There's no institutional shareholder base who will be able to put a floor on this. Actually long term shareholders are getting scared here and move to limit their losses - and who should buy the shares back up once the selling stops ? They will need a great quarterly record to reverse this damage.
this might still be a good chance to get long the stock but actually I am fearful here and staying at the sidelines
I guess CEO is still selling. Wouldn't care too much about this but I wouldn't want to own the shares given the unrealistic earnings expectations when considering the very real possibility of a giant hedging loss.
yes - their derivative gains and losses are included in their regularly earnings.
if they bought insurance against a further price decline this hedge WILL indeed show a giant loss this quarter
the gain on the sale of low priced inventory might make very well make up for this but everyone is expecting a giant quarter which just won't happen if they have to record a huge hedging loss.
no - that's wrong. As hedging is an integrated part of the overall business you can't back it out. It would be pretty wrong to do so in fact. And given last quarter's hedging gain on falling prices they will for sure report a huge hedging loss this quarter - while everybody else is expecting huge earnings.