About one month ago, I wrote a piece on Marley Coffee (Ticker: JAMN), and why I like this company and this stock. Although they are relatively small, they are growing nicely, expanding distribution, and have an unbeatable brand.
Since that initial writing, I've watched the company closely as they have gone from good to great.
Company CEO Brent Toevs recently told Bloomberg News about a new deal with Kroger Stores (Ticker: KR). For those of you that don't know, Kroger is the largest grocery chain in America, with over 2,400 stores. This alone could be a game-changer.
As reported in the New York Times, the company will be in over 6,000 stores nationwide by early fall, which is ahead of management's forecasted schedule.
The company also just posted their latest financials and at first glance they may not seem impressive, but a more insightful eye will find that revenues are holding - proving that the company is selling product and most likely receiving repeat orders.
More insight can be found by examining the Net Receivables, which are at their highest level ever - indicating that they are shipping more product that ever before, and waiting for the fat checks to come in from the likes of Kroger, Best Buy, Shaws, and other retailers that now carry Marley Coffee.
Make no mistake, the company isn't yet profitable… but don't forget, many companies, including those that are bought on the New York and NASDAQ exchanges everyday, aren't profitable either.
Investors buy these stocks not because of what the company is doing today, but because of where they are headed and what they will be worth tomorrow.
Marley Coffee (OTCPK:JAMN) is cheap now, but understandably so. It's a new, young company taking the first steps on a long, long growth curve. But the fact is, the company is taking those steps with precision, and with each new order and each new distributor, they get closer and closer to reaching a tipping point and busting out to new heights.
The company will be profitable someday… probably by the end of the year. But by then, the stock will already have moved to keep up with the financials. That's why I think the time to invest in this company is now.
I don't have a crystal ball. I don't know where this stock is going. But I can see that they are building a solid organization, sales are increasing, and the stock is dirt cheap. I think they are heading on an upward trajectory, so if you can buy now and hold for at least a few months, you may be sitting very well and thanking me later.
As with all my comments, I do not buy or plan on buying any stock mentioned herein. This is free advice folks. You can thank me later.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.