Trade-Ideas LLC identified Coffee ( JVA) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Coffee as such a stock due to the following factors:

  • JVA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.6 million.
  • JVA has traded 112,053 shares today.
  • JVA is trading at 13.31 times the normal volume for the stock at this time of day.
  • JVA is trading at a new low 5.17% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on JVA:

Coffee Holding Co., Inc. manufactures, roasts, packages, markets, and distributes roasted and blended coffees in the United States, Canada, Australia, England, and China. JVA has a PE ratio of 15. Currently there is 1 analyst that rates Coffee a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Coffee has been 130,400 shares per day over the past 30 days. Coffee has a market cap of $27.5 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.78 and a short float of 0.3% with 0.02 days to cover. Shares are up 25.7% year-to-date as of the close of trading on Monday.

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TheStreet Quant Ratings rates Coffee as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food Products industry and the overall market, COFFEE HOLDING CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • JVA has underperformed the S&P 500 Index, declining 21.79% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for COFFEE HOLDING CO INC is currently extremely low, coming in at 12.22%. Regardless of JVA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.92% trails the industry average.
  • COFFEE HOLDING CO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, COFFEE HOLDING CO INC swung to a loss, reporting -$0.23 versus $0.76 in the prior year.
  • The revenue fell significantly faster than the industry average of 16.1%. Since the same quarter one year prior, revenues fell by 40.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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