Coffee Holding Company (JVA) Deep Value Play

Coffee Holding (JVA) is back around deep value territory after spiking to $7 a share earlier in the year. It's now below $4 a share and I calculated net tangible asset value at $21 million or about $3.77 a share. Net current asset value is not much lower at $18.7 million or $3.35 a share. To me $3.35 to $3.77 roughly is the floor for the stock at such a discount. It's a crazy discount because this company is profitable, growing and in a good industry. I have a small position and will be adding if it continues to dip below NTAV and NCAV.

I Started A Patreon Page

Hello my loyal followers. I just set up a Patreon Page. Become a Patron here!

 If you aren't familiar with it I will tell you a little about it. You can also read about it here. It allows content creators like myself to run a subscription membership. It takes donations that are recurring and billed monthly. That said I will not be changing anything I have been doing or going subscription only at this time. My intent on setting this up is to simply take donations for my continued work on this blog and Twitter. I am very active on my Twitter and continue to post a lot of great alerts. All of my posts and everything will stay public and by donating monthly you will simply be supporting my efforts. At some time in the future I may start cranking out a ton of content on a paid membership only tier that I could post value stocks on like I used to do with net current asset and net tangible asset value stocks and another with trading alerts.

Gold Play Setting Up

I've been posting on Twitter about the technical setup forming on gold. I'm long some GLD I picked up a couple weeks ago or so. I'm going to buy more gold via an ETF or maybe even a leveraged ETF or mining ETF if gold starts to breakout again. I suspect if the FED cuts rates at all gold is going to rocket and not look back. I'm watching the futures themselves to see what happens of this triangular bull flag. The physical trust ETFs and some gold mining stocks are really running already. JNUG is a big breakout. Lots of breakouts like on CEF, AG, PSLV etc.

Long Opportunities Keep Working

I've been posting most of my entries and exits on Twitter lately. I have a lot of core positions I have had for months and years. Some of my favorite stocks with great fundamentals I hold include Planet Fitness (PLNT) which I am up 197% since buying at the IPO. I sold most of my shares of it pretty recently to protect profits. I intend to keep holding my remaining shares for a long-time. One of my new favorites I've been holding awhile is Innovative Industrial Properties (IIPR) which is a cannabis/marijuana REIT. Not only does it have a great dividend being a REIT but it is also performing exceptionally well this year. I also have held Canopy (CGC) and Aphria (APHA). I'm down on Aphria with a $15 cost basis. I recently took a trade in gold with UGL. Bought MITK, APPS, BBBY and CDE. Took a loss on QNST. These are just some of the stocks I hold and have been trading.

Cautiously Long

I have a bunch of long positions on in my account. I'm as lean as I can be though with about 50% in cash. I am short XRT Retail with EMTY but other than that I have about 15 to 17 long positions. More than I would like to have but if the setups and opportunity are there I take them. I just put a buy stop order to snag SPY short with the 3X ETF SPXS if SPY actually tanks tomorrow. If I traded options I would be looking for some additional protection. The more the markets quickly go straight up the more likely they are to come down just as fast or faster. When the complacency becomes standard mild to severe crashes can happen. I feel like we are due another algo driven flash crash. Maybe it will be 10% higher in the S&P but it seems inevitable. Corrections are healthy. There is nothing wrong with them and no reason to not be prepared.

 I've been brainstorming what individual companies I would like to buy for the long-term the next time a major correction or bear market comes. I'll do another blog post on this soon.

Found a Net-Net

I found a deep value net-net (net current asseets - total liabilities) this week. The company is O2Micro International (OIIM). It has net current asset value of $53.7 million and a market cap around 1.95-2.00 a share of $50 mil. I found it the other day below $2.00 a share with a $50 mil market cap. It's around a $53 mil market cap now which is still a good value given the rich valuations in the overall market. OIIM's past two quarters have been profitable. The chart has good momentum as the stock is near 52 week highs. Disclosure: I have a position

Follow Me On Twitter

I'm very active on Twitter these days. I've been onto some great small-caps lately with BGSF and CVSI I alerted at 2.00 recently. I have been laying out my maco thoughts on inflation and what sectors and commodities I think it will effect. Follow me here.

Is Bitcoin Stock a Good Buy?

The online currency Bitcoin has seen its price skyrocket lately. This has spawned a lot of other cryptocurrencies and over the counter stocks. One such liquid stock is Bitcoin Investment Trust GBTC. Is now a good time to buy bitcoin? I believe it is currently in bubble territory. It is heating up right now. There's mania. It's going to be like any bubble in history. The bubble isn't over yet but its not prudent to risk a big investment right now.

I anticipate a major crash at some point soon. The crash will be a great buying opportunity of Bitcoin itself. The chart analysis is telling me the end of the run isn't here yet, however it is getting closer. I alerted GBTC on my Twitter in early May. If you aren't following me on Twitter check it out!

Market Direction, ETF's

Major stock market indices continue to consolidate. It is prudent to diversify and take some risk off. Instead of traditional hedging stratagies like shorting I see more opportunity in low beta vehicles. This allows one to continue to stay bullish and capture any further market gains while hedging slightly. I really like difersifing onto gold GLD, US Treasuries via ETF TLT and alternative ETF CGW.

Technically gold and Treasuries are clearing resistance here and are moving inversly to the major indices. Water ETF CGW is also very uncorrelated to the market over the past few weeks. If there is a major crash history shows US Treasuries to be the best place for safety. In 2008 us treasuries surged. It also seems reasonable to allocate some of this bond position into foreign bonds.

I believe these three ETF's can add some diversity to a portfolio while giving it some protection as well.

This Is Sector Rotation

The sector rotation is going out of big tech and into financials, healthcare, possibly defense and transportation. This is essentially a strong bull market move. It's interesting tech is not leading the way but people are obviously positioning for the presidency and congress. I was wondering if the fall in tech had something to do with possible tariffs coming on tech companies in Asia if we start taxing China. I think it might have something to do with that but its just capital going from one sector to others here regardless.

The call I made here on the blog to buy biotech and financials was pretty epic the other day. Biotech is outperforming big-time. The other macro thing going on here is long term US treasuries are continuing to crash. Ticker TBT is the way to go as I have been talking about here for some time.

After surveying some scans and putting things together I have a great watchlist. I really like this small-cap Scorpio Bulkers SALT. It's a shipper. Breakout on trend on high unusual volume, earnings guidance is trending up and is improving. "I have to be able to draw it in crayon" -Peter Lynch

HEAR needs 1.45 to start to clear this long flag.

On the short side I like HADV EA GORO short. From Twitter Marc Lehman ‏@markflowchatter Sell side desk indicating 2 leading $EA titles are being discounted 40% at Target and Walmart = slow pre orders for holiday sales