Coffee companies stock prices explode
We’re sure you’ve been quite aware of the recent craze on Wall Street when it comes to coffee companies.
The entire sector has been on fire over the last couple of weeks.
Just look at the winners:
- JAMN from 0.60 to 6.50 +983%
- BCCI from 0.01 to 0.84 +8,300%
- HCEI from 0.005 to 0.41 +720%
- JCOF from 0.05 to 0.70 +1,300%
- CNOZ 0.015 to 0.15 +1,000%
Why are these stocks going through the roof? The main reason is the price of the raw commodity: coffee.
Take a look at this chart of coffee pricing for the past year:
You can quickly see that coffee prices have sky rocketed in the past year, and so have the end retailers as their profit margins have grown in step with this price curve.
Commodity prices have exploded across the board, and so have the producers and retailers share prices.
The other side of the equation is that fact that people are not going to give up their coffee. Most people have one thing on their mind when they wake up: get some coffee. Did you know that over 2.25 billion cups of coffee are consumed in the world every day?
Check out this article on coffee at Wikipedia: http://en.wikipedia.org/wiki/Economics_of_coffee It has a lot of interesting information about the flow of coffee from producer to your coffee cup. All great information in understanding where you can monetize these gains for your own portfolio.
The most important thing any trader can have in their arsenal is information, knowledge and a thorough understanding of the market space they are trading in. That way they can see the opportunities BEFORE they happen and capitalize on massive gains, such as the ones with the recent coffee companies above.
Other possible opportunities are available in other commodity sectors such as gold, lithium and rare earth minerals. All of these commodities have seen a recent surge in pricing which makes junior mining companies look favorable given the larger profit margins that are possible with a mineral deposit find.
Do the homework. Dig deep. The rewards will be yours.