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3 Reasons to Buy Coffee Holding Company

By Austin Smith – Updated Apr 7, 2017 at 3:02PM

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Today, Austin discusses three reasons to consider buying Coffee Holding (Nasdaq: JVA). The company’s interests will continue to serve those of the investor, since the top two executives own almost 20% of the company. Even better, the company's low forward P/E gives it a very affordable price, even if the anticipated sales estimates end up being too optimistic. And a perceived weakness could be its biggest strength. A huge portion of Coffee Holding's business comes from Green Mountain Coffee Roasters. Obviously, more flexibility would benefit the company, but analysts expect Green Mountain to grow EPS at 33% each of the next five years. Austin remains bearish on the company's overall potential, but he's still found plenty of room for optimism. 

If the risk with Coffee Holding is too much for you, I suggest you consider a more stable growth story such as The Motley Fool's Top Stock for 2012. It's an emerging-market growth story that our chief investment officer has identified his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.


Austin Smith owns shares of McDonald's. The Motley Fool owns shares of McDonald's, Green Mountain Coffee Roasters, and Starbucks. Motley Fool newsletter services recommend Green Mountain Coffee Roasters, McDonald's, and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Starbucks Corporation Stock Quote
Starbucks Corporation
SBUX
$84.81 (0.76%) $0.64
Keurig Green Mountain, Inc. Stock Quote
Keurig Green Mountain, Inc.
GMCR.DL
McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$243.76 (-0.89%) $-2.19
Coffee Holding Co., Inc. Stock Quote
Coffee Holding Co., Inc.
JVA
$2.45 (-5.77%) $0.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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