3.21.2011

JVA: "overvalued at its current market price"

Coffee Holding Co.: Shrewdly Overvalued

Excerpt:

What led to the surge in stock price and trading volume? Deja-vu market speculators. So ask yourself: What if other investors realize Coffee Holding Co. isn't the growth story they sought? And suppose that next quarter, earnings came in flat instead of improving over last year’s. Would that justify the stock price sliding back down to $4/share? Beyond a reasonable doubt, Coffee Holding Co., Inc. is overvalued at its current market price.

Comment: Current market price is $ 7.06. I think it is worth the $ 4.07 I paid for it and intend to keep it for the long term (at least one year - to fall into long term capital gains territory). Yahoo stock info on JVA.

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