Shares of Thinly Traded Coffee Stock, $JVA, Soars on Earnings

I believe this company is located in Staten Island, NY, so buyer beware.  The stock is higher by 45% this morning on much better than expected results, stemming from their deal with Walmart for their coffee brand ‘Cafe Caribe.’ They will be rolling out their product in Walmart store later this month, followed up by another 200 stores in an unnamed regional supermarket chain.

It’s worth noting their sales to Green Mountain Coffee, now privately held, were abysmal.

• Q2 EPS $0.14 vs. ($0.33) last year.
• Net sales -29% to $21,406,939, reflecting lower coffee prices during the quarter and reduced wholesale transactions with Keurig Green Mountain, Inc. of ~$8,158,000.
• Gross profit as a percentage of net sales increased to 15.5% for the three months ended April 30, 2016 from (3.6%) for the three months ended April 30, 2015, due to improved margins on our wholesale and roasted business as well as a decrease in losses quarter to quarter on our hedging operations.
• “sales of our flagship brand, Café Caribe, continue to increase in both existing and new markets, including our anticipated initial roll-out by Wal-Mart at an expected 400 stores later this month as well as an expected additional roll-out by a large regional supermarket chain at an expected 200 stores later this summer.”