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Sunday, June 29, 2014

It's OK to Drink Coffee and to Buy Coffee Stocks

According to recent research, you can drink moderate amounts of coffee and it won't adversely affect your cardiovascular health. In addition,drinking coffee  is not associated with increased risk of atrial fibrillation and the low level consumption of caffeine may even provide a small protective effect

Other studies have shown that coffee and caffeine may help improve memory, prevent skin cancer, assist with weight loss, prevent diabetes, and reduce prostate cancer risks.  

So are there ways that caffeine can make your portfolio healthy. There are almost two dozen stocks in the coffee and tea business, based on the list of coffee stocks at WallStreetNewsNetwork.com, with many of them paying dividends. 

The largest coffeehouse retailer in the world, with coffee shops in 50 countries, is Starbucks (SBUX), which has more than 18,000 shops worldwide. The stock trades at 25 times forward earnings, and sports a yield of 1.4%. Both earnings and revenues grew by over 9% for the latest quarter.

Keurig Green Mountain (GMCR), based in Waterbury, Vermont, trades at 35  times trailing earnings and 31 times forward earnings. Earnings for the latest reported quarter rose 22.4% on a 9.8% increase in revenues. Investors receive a small yield of 0.8%.

One of the largest wholesalers of coffee is Coffee Holding Co. (JVA), which also markets private label coffee and branded coffee in North America. The company has 90 varieties of raw green coffee beans which it buys from all over the world and marketed to large and small coffee vendors. Unfortunately, the company reported a 30% drop in revenues for the latest quarter, along with negative earnings, and does not pay a dividend. 

For a free list of coffee, tea and caffeine companies which you can download, sort, and update, go to WallStreetNewsNetwork.com.

Disclaimer: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

3 comments:

  1. Anonymous4:20 PM

    The reason JVA reported a 30% drop in revenues is because the price of coffee rose over 60% during the quarter and the majors held off purchasing coffee, using their inventory instead. Now that the price of coffee has stabilized and the majors are raising prices, they will resume their purchases and will have to refill their inventories. That means JVA is likely to see a 30% increase in revenues over the next few quarters.

    A little information can be dangerous. Understand why things are the way they are.

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  2. Anonymous1:06 AM

    JVA does a lot of hedging on coffee prices ... if they guess wrong, it doesn't matter what the price is or who buys what ... they are going to have losses!

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  3. One thing I do like about JVA is that it is debt free, with a dollar per share in cash.

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