Seeking Alpha
  • Michael Bryant
    Coffee Holding (JVA) down 10%. Molycorp (MCP) down 21%. Even Midway Gold (MDW) is off its highs for the day. Buy on the dips.
    9/20/11
    Reply (9)
    • vspec34: Not sure what's going on with JVA, no real news and it's down -15% today?
      9/21/11
    • Michael Bryant: That's the investors dream: to buy a stock with is down on no news. About JVA, in general, it costs more when coffee prices go up.
      9/21/11
    • Michael Bryant: But I would look at Green Mountain's (GMCR) sales. As long as GMCR does fine, JVA should do fine.
      9/21/11
    • rarora: GMCR & Peet were up all day but JVA is just crashing.are u still holding on?wondering what to do.my avg in is $16 right now,$4 a share loss
      9/21/11
    • Michael Bryant: I'm still holding. Remember it still offers a small dividend. If 43% of JVA sales are to GMCR, mathematically it should rise with GMCR.
      9/22/11
    • Michael Bryant: But like all coffee stocks, their margins are squeezed by coffee prices. Concern may be that JVA may be too small to maintain pricing power.
      9/22/11
    • Michael Bryant: But if JVA falls, GMCR will fall, too, unless they find another supplier which would be hard with such a large chunk of sales.
      9/22/11
    • Michael Bryant: Thus, GMCR won't let JVA fall. And SBUX won't let GMCR fall - they have an agreement.
      9/22/11
    • rarora: thanks for your insight Michael.
      9/22/11
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