Stock daily read

What happened with JVA today?

Why it moved
Explains possible causes using the day’s news and filings
Moving with the market?
Uses market moves and trading volume to assess what drove the change
What to watch next
The next thing that could change the call, and what to look for

No read yet

Uses news and trading volume to explain the day’s move and how it relates to the market.

Investment outlook

JVA in three months: buy, wait or sell?

Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.

In the report
  • Buy / Wait / Sell rating
  • 3-month target price
  • Bear · Base · Bull
  • vs. the market

Company

Company overview

Coffee Holding Co., Inc. supplies businesses with unroasted beans and packaged roasted coffee, earning most of its revenue in North America. It buys beans sourced from coffee-growing countries through dealers, mainly based in the United States, and sells unroasted specialty coffee to roasters and coffee-shop operators that process it themselves.

For customers that want to sell coffee under their own names without manufacturing it, the company roasts, blends and packages coffee to their specifications. It also makes coffee under its own brands and licensed names, including S&W and IL CLASSICO, selling to supermarkets, wholesalers and independent stores.

Green coffee is its largest single cost, so profitability depends on bean purchase prices and how quickly it can adjust customer prices. Sharp cost increases may not be passed on promptly or fully. One customer supplies a meaningful share of sales, and most customers have no long-term contracts, making repeat orders important to the business.

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Source: SEC filing

Red flags

Know what’s buried in JVA’s filings before you buy

The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.

Sorted into
  • Happening now
  • Could go wrong
  • Built in

Moat

JVA says it has a moat. Does it hold up?

Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.

Each edge rated
  • Strong
  • Moderate
  • Limited
  • Unproven

Related companies

  • Competition
  • Shared drivers
  • Supplier
  • Customer

Coffee Holding’s results hinge on green-coffee costs and keeping wholesale customers; its named main U.S. private-label coffee rival is Massimo Zanetti Beverage Company, not vehicle maker Massimo Group.

  • Smucker competes for the same retail coffee purchases as Coffee Holding, selling Folgers, Café Bustelo and packaged Dunkin’ coffee against Coffee Holding’s own brands sold through supermarkets, wholesalers and independent stores. Watch Smucker’s coffee promotions, especially in the northeastern United States, where its greater marketing resources put pressure on Coffee Holding’s branded coffee sales.

Agenda

in 35 daysTue, Nov 24

  1. Time to be announced

    The J.M. Smucker Company earningsSJM

    J.M. Smucker’s report will show how Folgers, Café Bustelo and packaged Dunkin’ coffee compete for the same retail purchases as Coffee Holding’s own brands.