Bringing on the A team won't be cheap for PZZI...but they will be paying it off it options.
When the overall market goes down, Newcastle has meet redemptions for those who are selling it's fumds. Therefore they have pare some of their holdings which includes PZZI. Don't worry they will buy back at lower prices.
Hedging has long been this companies Achilles heel.....the idea of hedging is to flatten out any losses or gains. Even when coffee prices were going ballistic to the upside a few years ago, JVA's hedges were getting creamed as well.Sure they had one or two good quarters but that was on the discovery of their relationship with GMCR They are just not a big enough player in the market when you have firms like Goldman Sach's on the other of the trade who know the positions of the smaller players,. It's always been like that and I'm not sure how they can overcome this. $6 million in realized hedging losses?? $300K+ in unrealized gains so far...looks like they closed out most positions at the bottom. It's too bad since they since they provide a great service to companies like GMCR. Perhaps with rising coffee prices, the PERCEPTION will be that Coffee Holding can make some money. However, the company was always been known as a hedging operation since gross margins are only 3-5%.