Wednesday, July 28, 2010

Brazil Coffee at a 5 Year High: Time to Look at Coffee Stocks

Today, September 2010 coffee futures were up over 2% for the day. Brazil Arabica coffee is trading around a five year high. So will this high price adversely affect coffee companies? Will the coffee retailers be able to pass through higher prices to their customers? Here are some coffee companies worth investigating.

Caribou Coffee Company, Inc. (CBOU) is a Minnesota company operates gourmet coffeehouses throughout the United States. The stock has a PE of 36 and a forward PE of 18.4.

Growers Direct Coffee Company, Inc (GWDC.OB) sells coffee grown in Papua New Guinea, Jamaica, and Ethiopia. This is an extremely low cap stock.

Coffee Holding Co.Inc. (JVA) is a New York based wholesale coffee roaster and dealer. It has a P/E of 6.7 and pays a yield of 2.5%.

Green Mountain Coffee Roasters Inc. (GMCR) is one of the "bigger' coffee companies, having a market cap of over $3.8 billion. This Vermont company roasts, distributes, and sells coffee products in the Northeast. Their current P/E is 57, their forward PE is 28.8.

Peet's Coffee & Tea Inc. (PEET) is an Emeryville, California based company which roasts, retails, and markets roasted whole bean coffee throughout the United States. They have a forward P/E of 28, and a forward PE of 25.7.

Starbucks Corp. (SBUX) is a Seattle, Washington company which roasts and markets whole bean coffees through over 13,000 stores throughout the world. This is the third reporter of earnings tomorrow. Their P/E is 23 with a forward P/E of 17.5.

To see lists of stocks of other industries, check out the lists at

Author does not own any of the above.


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