Stock Alert for Coffee Holding Co. Inc. (JVA)
  • Coffee Holding Co. Inc. (JVA) Continues Gains after Strong Earnings
  • Stock Alert for Caribou Coffee Company Inc. (CBOU)
  • " />

    Stock Alert for Coffee Holding Co. Inc. (JVA)

    Coffee Holding Co. Inc. (JVA) operates as an integrated wholesale coffee roaster and dealer in the United States.  It offers a broad array of coffee products across the entire spectrum of consumer tastes, preferences and price points.  The Company’s private label and branded coffee products are sold throughout the United States, Canada and abroad to supermarkets, wholesalers, and individually owned and multi-unit retail customers.

    Share Statistics (08-July-11) FY 

    2009

    FY 

    2010

    %  

    Chg

    Q2 

    2010

    Q2 

    2011

    %  

    Chg

    Symbol JVA Revenue, $Mn 74.45 83.49 12.1% 19.92 37.77 89.6%
    Current price $26.75 Gross marg. 13.4% 12.6% -6.0% 14.3% 9.6% 32.9%
    52wk Range: $3.67-$26.82 Oper. margin 4.8% 4.9%
    Avg Vol (3m): 669,319 Net margin 4.4% 2.9% -34.1% 4.0% 3.2% -20.0%
    Market Cap. 146.86M
    Shares Outstanding 5.49M EPS, $ 0.37 0.44 18.9% 0.15 0.22 46.7%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of JVA soared to a new 52-week high of $26.82 on Friday.  The stock closed the session at $26.75, a gain of $4.40 on the day.  Over the last five sessions, the stock was up 75%. About 3.58 million shares have traded hands during the session, versus the 10-day average volume of 1.32 million. The stock is currently trading above its 50-day moving average of $11.96 and above its 200-day moving average $6.61. JVA’s recent jump, along with that of other coffee stocks, seemed to have been boosted by the impending IPO of Dunkin’ Donuts, which valuation has reportedly been increased.

    JVA has a market cap of $146.86 million and shares outstanding of 5.49 million. The Company’s P/E ratio currently stands at 40, higher than the average food & beverage industry P/E ratio of 33.4 and the S&P 500 P/E ratio of 17.7.

    Financial Summary

    JVA posted net sales of $37.33 million for the three months ended April 30, 2011, up 87% from $19.92 million  reported in the comparable quarter last year. For the six months ended April 30, 2011, net sales totaled $62.97 million, up 52% $41.28 million reported for the six months ended April 30, 2010. The Company attributed the increase in net sales to higher sales prices, additional poundage sold due to the addition of its OPTCO subsidiary, as well as additional sales of green coffee to new customers.

    For the three months ended April 30, 2011, the Company reported net income of $1.19 million, or $0.22 per share (basic and diluted), compared to net income of $800,448, or $0.15 per share (basic and diluted), for the three months ended April 30, 2010. Net income for the six months ended April 30, 2011, was $2.23 million, or $0.41 per share (basic and diluted), compared to $1.36 million, or $0.25 per share (basic and diluted), for the six months ended April 30, 2010. The increase in net income primarily reflects increased gross profit.

    Financial Strength (08-July-2011) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.32 0.91 0.73 0.72
    Current Ratio (MRQ) 2.15 1.34 1.01 1.05
    LT Debt to Equity (MRQ) 0.00 30.87 26.43 136.34
    Total Debt to Equity (MRQ) 9.89 41.76 35.98 181.53
    Interest Coverage (TTM) 27.62 0.24 0.56 18.28

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among two polled investment analysts. Against the Coffee Holding Co Inc company.

    Analyst Detail Buy Outperform Hold Underperform Sell No Opinion
    Latest 1 0 0 1 0 0
    4 weeks ago 1 0 1 0 0 0
    2 months ago 1 0 1 0 0 0
    3 months ago 0 0 1 0 0 0
    Last year 0 0 0 0 0 0

    Source: markets.ft.com

    Consensus Estimates Analysis

    No consensus analysis data available.

    Technical Analysis

    Source: http://stockcharts.com

    JVA is above the upper Bollinger Band, implying that it is currently extended from its recent trend.

    The MACD for JVA currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July08-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Green Mountain Coffee Roasters Inc GMCR 95.94 13.63B 64.82 45.04 5.39 3.82
    The J. M. Smucker Company SJM 76.20 8.72B 14.82 13.66 1.54 1.52
    Kraft Foods Inc. KFT 35.70 62.76B 16.00 14.28 1.19 1.14
    The Kroger Co. KR 25.29 15.30B 12.84 11.65 0.17 0.16
    Jammin Java Corp. JAMN 1.21 92.86M n/a n/a n/a n/a
    Peet’s Coffee & Tea Inc. PEET 62.14 796.45M 42.60 35.11 2.18 2.00
    Processed & Packaged Goods Median 17.06 n/a 1.03 n/a
    Coffee Holding Co. Inc. JVA 26.18 143.73M 34.45 31.54 1.29 1.17

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

     

     

     

    Leave a Reply

    Your email address will not be published. Required fields are marked *