Bet the Farm Play
Farmer Bros. Co. (FARM)
Bet the Farm Play. Currently, in a swing trade but at 10$ it's still cheap I'm looking to exit at 30$. Why Is a still a buy? The price of coffee inelastic. Right now, there are market forces that are driving the price of coffee up. List of the major catalyst 1. Major coffee producers around the world are experiencing drought thus reducing coffee supply. 2. Opening up of the economy will lead to demand shock of coffee. Farmer Brothers Co. engages in the manufacture, wholesale, and distribution of coffee. Their big customers are Hotel chains and Restaurants. It's an old and established company with a lot of history. They saw a deep decline over the years due to bad management and lack of innovation and investment as increasing Global Competition. Before Covid, they hired a Supply Chain CEO that's looking to turn around the company through strategic partnerships and investment. They also have the market blowing wind behind their backs from the catalyst above. Also, this company is not mainstream I.E, not tech and it's good for anyone looking to diversify their portfolios more
https://www.youtube.com/watch?v=2MwnCpzukj4 WSJ posted this recently. After months I saw the trends. Something is coming to the coffee market.
Submitted May 06, 2021 at 10:32AM by Impressive_Leader928
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