Right off the bat, I think it's important to note that Farmer Brothers (NASDAQ:FARM) is riskier than average. There was an accounting restatement, the founding family has significant involvement in the firm (and not always for the best), and the company's financials do not impress whether you look at EPS, free cash flow, or book value. Fellow Seeking Alpha contributor Richard Pearson did a very thorough job of covering many of the problems of Farmer Brothers back in January ("Trouble Is Brewing At Farmer Brothers Coffee"), and though I don't agree with every point he made, I'd still suggest investors read it carefully as background material.
I am not as bearish as Mr. Pearson, but I...
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