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Strategies & Market Trends : Speculating in Takeover Targets
CTG 7.660-2.3%12:13 PM EDT

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To: Paul Senior who wrote (3118)7/24/2012 2:36:41 AM
From: richardred2 Recommendations  Read Replies (4) of 6377
 
IMO I think JVA represents a good value (Sales/Market cap) presently from my last comments on it. It's down about 40% from those comments . I think the balance sheet is in ok shape, but trading losses in commodities have hurt, along with private label business. Given yesterdays news on Peets. The speculative appeal has notably gone up. The company would be better off in the hands of a Sysco or Dunkin Brands as I think the unbranded private label business will continue to struggle. FARM bought a higher end coffee company Coffee Bean International to try and get into a higher profit margin branded business. FWIW At present levels I think its worthy of a good risk reward buy on a small weighting. This on hopes of a turnaround yet to come or a hypothetical takeout. I'm still just a looker at FARM to see if there is some improvement from the last quarter. I've been a true coffee lover since I was a teen. Witch is why I have interest in the group, but have yet to invest . As I do, I'm sure you remember Chock full o’Nuts stock. That took forever to get bought out, eventually by Sara Lee. I'm not sure, but I now think Sara Lee is now out of the coffee business altogether. P&G has exited also. That said, I think the coffee business, unless you serve or sell something that's specialty, trendy or Branded, will continue to be a Fickle business.

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