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|Company||JAMMIN JAVA (OTC BB: JAMN.OB)|
|Stock Price at Recommendation||$3.24|
JAMMIN JAVA Profile
|Headquarters||Beverly Hills, Calif.|
|Industry||Packaged foods and meats|
|Market Cap||$137 million|
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Source: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.
This Week's Pitch:
I've seen some of the "Coffee" sellers really benefit over the last few years from America's habit and quest for convenience. Besides [Starbucks (Nasdaq: SBUX ) ] and Dunkin Donuts, we have the rise of the K-Cups and other "quick fixes". Despite the historical data on the success of this multi-billion industry, Jammin Java Corp is extremely OVER Caffinated at these levels. In fact, I wouldn't give you the cost of a single K-Cup for a share.
Jammin Java Corp is an OB stock that has just enough press releases to seem legit, but at WHAT VALUATION, or do speculators...errr...I mean investors really care or know how to value a company. Hint people...you don't go from $2 per share to $3.20 in five days, (we'll get back to how you were even at $2 per share in a moment), just because you sold out a "limited run" of your coffee at a deal of the day on [Amazon.com (Nasdaq: AMZN ) ]. Yes, you sold something on Amazon....(don't tell anyone, but pretty much anyone can sell on Amazon...shssss), good for you, but your market cap increased by $50 Milliion because you had a limited run on Amazon???
Now back to the $2 per share before the caffination spike. Your share price has an asset value of about $0.01 per share and that's being generous. You're now at 390 times your book value.
You started as an exploratory company in Nevada to recycle electronics, decided you couldn't make it at that business and swapped some shares for rights to come coffee. You have NO employees other than management and you as of your Dec 10-Q you have less $640,739 of assets of which $640,000 is your licensing agreement. You're $54,000 in the hole with loans from your director.
I think you need to sell a lot more K-Cups to be worth your $0.01 book value, let alone the $3.00 speculation you're currently at.