Good afternoon to all 41,148 investors.
You might have seen it yesterday but I was suspended from Twitter without any notice. All of the accounts I had built up were gone in a flash without any warning. I have not heard back from Twitter and it is likely I never will.
With that being said, it is time to move onward and upwards. Twitter was one of the places where I interacted with all of you on a daily basis. I enjoyed our conversations and loved hearing about your investing ideas.
I would like to continue our small talk chats going forward. My plans are to build a community where we can all talk openly and freely about investing and pitch our investing ideas. I was thinking a stock chat group on Discord might be the best way to facilitate this.
This future stock chat group won’t be launching until sometime in early 2022 as I am pretty busy going into the New Year with a few projects that I am wrapping up. If anyone has any ideas on what platform we should use feel free to drop ideas in the comment section. In addition, let me know if this is of interest to all of you.
Here’s a quick stock idea for you guys that just popped up on my screen.
Farmer Bros. (“FARM”) is a microcap manufacturer, wholesaler and distributor of coffee, tea and other culinary products in the United States. The company has a market cap of $120 million and an enterprise value just short of $200 million.
There are a few things that caught my eye with Farmer Bros.
The company is trading at a multidecade low. The stock has crashed from over $30 per share to a low of only $6.90 today.
There is a new management team running the ship with a turnaround in process. The management team has used the COVID downturn to take a significant amount of costs out of the business. Should revenues return to pre-COVID levels, there could be strong operating leverage.
The CEO, Deverl Maserang, recently made a large insider purchase of 16,600 shares at a price of $6.03.
I haven’t fully underwritten Farmer Bros and currently do not have a position in the stock. The set up looks pretty encouraging. I have made a lot of money in these types of turnaround situations in the past, especially when an insider starts buying shares. I’m guessing we are at the lows and the stock will re-rate to the $10-12 per share range over the next few months. In addition if management executes on their turnaround strategy, I don’t see why the stock couldn’t re-rate even higher.
If anyone does research on Farmer Bros. let me know. I would love to compare notes.