Will Surge in Coffee Stock Brew JAMN?
Will the recent surge in coffee stocks carry Jammin Java (JAMN:OB) ? Only time will tell, but based on the recent trading pattern of JAMN, it seems like a risky propsition. Back in May, shares of JAMN blew through the $6 dollar level on the type of heavy volume that only comes with a super hot penny stock.
However, as many expected, shares pulled back as the stock promotion slowed down. Now, at the time of this entry, JAMN is in strange position. The stock can continue to base, or it can potentially go much lower if the support level of $1.42 is broken on volume. In the past two weeks we have seen stocks like Starbucks (SBUX:NASDAQ) and Caribou Coffee (CBOU:NASDAQ) make sizable moves and in CBOU’s case, set a new 52 week high. The upcoming Dunkin Brands IPO has also had a positive impact on the group as the industry’s valuations are reset.
JAMN Fundamentals
There is just one issue to look at. On a fundamental basis most industry experts accept that the coffee industry is growing rapidly. But has JAMN improved it’s fundamentals enough to legitimately trade with the group ? Or is it just going to become another fallen trading vehicle like Lithium Exploration Group (LEXG:OB) ?
Our subscribers know that when we highlight or issue alerts on penny stocks, we suggest that they keep there time frame short. Often only staying in the trade for only 1 or 2 days. This guideline should still apply when trading a penny stock like JAMN, even at these reduced levels. So the best way to play JAMN from here is probably from the sidelines, unless you are a penny stock of course. For now, wait to see if the support level holds and watch for more positive industry wide news because it could cause a sympathy move to the upside. Keep in mind though, that there is a significant amount of negative press out there regarding JAMN. So sitting this one out completely is probably wise.
Check back for more penny stock news, IPO updates and stock market research.
Sign up for JAMN stock alerts on below!
Related posts:
- Coffee Stocks – JAMN.OB JAMN – Jammin Java and Green Mountain Coffee Stocks There...
- Dunkin’ Brands IPO Impacts JAMN? Dunkin’ Brands DNKN, JAMN? Last week we saw Dunkin’ Brands...
- Monday Stocks JAMN, RIMM Stocks to Watch NOK, RPC, AAPL Here are some stocks...
- Tuesday Stocks to Watch JAMN, SLV Stocks to Watch WWW, BAC, MCP Here are a few...
- Friday Stocks to Watch JAMN, COF, BAC Stocks to Watch RIMM, WAMUQ, BAC Here are some names...
Related posts brought to you by Yet Another Related Posts Plugin.
Penny and Small Cap Stock Alerts