Twitter Banishment

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.

Stock Idea

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.

1. 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.

2. 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.

3. 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.

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Alpha Letter is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.

alphaletter.co (“Alpha”) is a website owned and operated by Substack. Alpha is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Alpha in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Alpha is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Alpha does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Alpha does not verify the adequacy, accuracy or completeness of any information. Neither Alpha nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Alpha nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis