Is Baristas Coffee (BCCI) the Next JAMN ?
As many of you know, coffee related stocks have been somewhat hot in the last month or so. The trend has lifted large caps such as Starbucks (SBUX:NASDAQ), penny stocks like Jammin Java (JAMN.OB) and has created a buzz around the upcoming Dunkin Brands IPO.
Now maybe some of that hype will trickle down Baristas Coffee (BCCI.PK), which trades on the pink sheets. It seems now a days, that everyone who plays a small cap coffee name is trying to find the next Diedrich Coffee which was bought by Green Mountain Coffee Roasters (GMCR:NASDAQ) in 2009.
Can BCCI perform like JAMN
Is BCCI the next Diedrich ? Probably not. But can BCCI perform like JAMN ? The answer is maybe. Baristas Coffee has a strange niche business because it’s based on drive through espresso sales in Texas and Washington. BCCI also used costumed female baristas to serve it’s clientele at the company’s 6 locations, so there is a somewhat of a Hooters twist to the story.
On a fundamental basis, according to Yahoo Finance, Baristas Coffee, BBCI is a superior company to Jammin Java. BBCI does show a loss on the net income side, but does generate roughly 728k in revenues, which is substantially more than it’s counterpart JAMN.
However, news and promotions are what often turns microcaps into hot penny stocks. Investors rarely buy pink sheets or bulletin board stocks based on fundamentals, so a key to the success of BBCI could be how many eyeballs are drawn to the name. It seems like a promo is currently underway, so add BBCI to your penny stock list and monitor the stock for volume, news and message board activity.
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