Tag: caffeine

Caffeine May Boost Your Health and Stock Portfolio

by Fred Fuld III

Caffeine is a natural stimulant found in various foods and beverages, such as coffee, tea, chocolate, and energy drinks. It affects the central nervous system and can provide several health benefits when consumed in moderation. Here are some potential health benefits of caffeine:

Increased alertness and focus: Caffeine can help improve mental alertness, enhance concentration, and reduce fatigue. It stimulates the brain by blocking the neurotransmitter adenosine, which promotes sleep and relaxation.

Enhanced physical performance: Caffeine has been shown to boost athletic performance and endurance. It can increase adrenaline levels, improve muscle contraction, and reduce perceived exertion, leading to improved stamina and exercise capacity.

Weight management: Caffeine has a mild appetite-suppressant effect and can temporarily increase metabolism. It may help with weight loss or weight maintenance when combined with a healthy diet and regular physical activity.

Improved cognitive function: Caffeine can enhance cognitive function, including memory, reaction time, and attention span. It may also reduce the risk of certain neurodegenerative diseases like Alzheimer’s and Parkinson’s.

Mood elevation: Caffeine can improve mood and increase feelings of well-being. It stimulates the production of neurotransmitters like dopamine, serotonin, and norepinephrine, which play a role in regulating mood.

Reduced risk of certain diseases: Some studies have suggested that regular caffeine consumption may be associated with a lower risk of certain conditions, such as type 2 diabetes, liver disease, certain types of cancer, and heart disease. However, more research is needed to establish a definitive link.

Protection against neurodegenerative diseases: Caffeine intake has been associated with a lower risk of developing neurodegenerative diseases such as Alzheimer’s and Parkinson’s disease. It may help protect against the accumulation of abnormal proteins in the brain.

Decreased risk of stroke and heart disease: Moderate caffeine consumption has been linked to a lower risk of stroke and heart disease. However, excessive intake may have the opposite effect, so moderation is key.

It’s important to note that while moderate caffeine consumption can have these potential health benefits, excessive intake or sensitivity to caffeine can lead to negative effects such as sleep disturbances, increased heart rate, anxiety, and digestive issues. Individual responses to caffeine can vary, so it’s best to listen to your body and consume it in moderation.

If you are wondering how investors can take advantage of caffeine, here are some examples.

Starbucks (SBUX) is the Seattle, Washington based company which is a globally renowned coffeehouse chain that has revolutionized the way people enjoy and experience coffee. With a passion for crafting high-quality beverages, Starbucks strives to provide a welcoming atmosphere where customers can savor the artistry of their coffee creations. Beyond coffee, the company offers an extensive menu of handcrafted beverages, including teas, refreshers, and indulgent treats, catering to a diverse range of tastes and preferences. Starbucks has become synonymous with exceptional coffee, fostering a sense of community and connection that extends far beyond the coffee cup.

Starbucks has a large market cap of over $112 billion and pays a dividend yield of 2.16%. It trades at 31.8 times trailing earnings. The quarterly earnings per share growth year-over-year was 34.8%, with earning expected to grow another 19.5% next year..

Coffee Holding (JVA) is a leading vertically integrated coffee supplier that operates in the dynamic global coffee market. With a strong focus on sourcing, roasting, and distributing a wide range of coffee products, the company serves as a key player in the industry. Through strategic partnerships with coffee growers and producers worldwide, Coffee Holding ensures a reliable supply chain, allowing them to meet the demands of both wholesale and retail customers.

In addition to its core coffee operations, the company has diversified its product portfolio to include private label and branded coffee offerings, expanding its market reach. Leveraging its expertise and industry relationships, Coffee Holding has positioned itself as a trusted provider of high-quality coffee products across various distribution channels. By maintaining a keen eye on market trends and consumer preferences, the company continues to adapt and innovate, cementing its position as a reputable player in the competitive coffee industry.

With an extremely low market cap of $9.3 million, the company’s stock should be considered very speculative. The company is currently generating negative earnings. However, it has an extremely favorable price to sales ratio on 0.14, and sells at 38% of book value.

Another caffeine stock is Farmer Bros. Company (FARM), a well-established foodservice provider that specializes in coffee and related products for the hospitality industry. With a rich history dating back to 1912, the company has solidified its position as a trusted partner for restaurants, hotels, and other foodservice establishments. Farmer Brothers sources, roasts, and distributes a wide range of coffee blends, including sustainably sourced and certified organic options, catering to diverse customer preferences and evolving consumer trends.

Beyond coffee, Farmer Bros. offers an extensive array of beverage and foodservice solutions, including tea, cocoa, spices, and culinary products. Their comprehensive product portfolio is complemented by a suite of value-added services, such as equipment maintenance and technical support, ensuring seamless integration of their offerings within the foodservice operations of their customers.

The company has a small market cap of $61.3 million, and is currently generating negative earnings, so should also be considered extremely speculative. It also has a great price sales ratio of 0.13, and trades at 82% of book.

If caffeine can’t help your stock portfolio, at least it might improve your cognitive function.

Disclosure: Author didn’t own any of the above at the time the article was written.

Coffee May Benefit You and Your Portfolio

by Nkem Iregbulem

Many people drink coffee first thing in the morning. Some heavily rely on this dose of caffeine to boost their energy and start their day. Turns out that in addition to its energy-boosting powers, coffee may be associated with more health benefits than we once thought. Recent studies have highlighted different reasons why coffee may be good for us.

A cohort study published in the Current Developments in Nutrition journal this past May investigated the association between coffee consumption and mortality rates. The participants of the study were 36,758 US adults ages 20+ years who participated in the National Health and Nutrition Examination Survey (NHANES) from 1999 to 2014. Researchers found that drinking 1 to 2 cups of coffee a day was significantly associated with a reduced risk of heart disease mortality. Additionally, they found that participants who consumed 1 or more cups of coffee a day had a lower risk of all-cause mortality.

Recent studies have also studied the potential health benefits of caffeine, a key component of coffee. A meta-analysis published in Nutrients this past June explored the effect of caffeine on the risk and progression of Parkinson’s disease (PD). Nine different studies were included in the healthy cohort, and four were included in the PD cohort. Researchers observed a significant deceleration in the progression of motor symptoms in patients with PD. They also found that caffeine consumption among healthy individuals was associated with a lower risk of developing PD.

These potential health benefits may also compel you to invest in some coffee-related companies. Your options include Starbucks (SBUX), Coffee Holding (JVA), Farmer Brothers Co. (FARM), Spot Coffee (SPP), and Youngevity International Inc. (YGYI). All of these stocks are traded on NASDAQ except SPP, which is traded on the TSX Venture Exchange — previously known as the Canadian Venture Exchange.

Your first option is Starbucks (SBUX), the largest coffeehouse chain in the world. The company has over 31,000 stores around the world that sell coffee, tea, blended drinks, sandwiches, pastries, and many other food and drink items. The global coffee powerhouse was founded in 1971 and is based in Seattle, Washington. Starbucks has a market cap of $90.09 billion and pays a dividend yield of 2.13%. With a high price-to-sales ratio of 3.81 and a price-to-book ratio of 71.29, its stock trades at 28.25 times forward earnings. The company enjoys a 3-year revenue growth rate of 7.54% and an even better 5-year revenue growth rate of 10.02%. Starbucks has managed to increase its revenue each fiscal year over the past decade.

You might also consider investing in Coffee Holding (JVA), a company that makes, roasts, packages, markets, and distributes roasted and blended coffee for private labeled accounts and its own brands. Its products can be divided into three product categories: wholesale green coffee, branded coffee, and private label coffee. The company was founded in 1971 and is currently headquartered in Staten Island, New York. Coffee Holding has a market cap of $18.1 million and does not pay a dividend. Its stock has an excellent price-to-sales ratio of 0.22 and a price-to-book ratio of 0.71. As of its most recent quarter, Coffee Holding has $2.65 million in total cash and $7.6 million in total debt. The company has a 3-year revenue growth rate 3.08% but a negative 5-year revenue growth rate of -4.50%.

Another option is Farmer Brothers Company (FARM), a coffee foodservice company that makes, wholesales, and distributes coffee, tea, and hundreds of other foodservice items to retailers and foodservice providers. Its customers include hotels, offices, restaurants, convenience stores, and other establishments. Founded in 1912 and based in Northlake, Texas, Farmer Brothers Company has a market cap of $123.08 million and does not pay a dividend. The stock has an excellent price-to-sales ratio of 0.22 and a price-to-book ratio of 0.83. As of its most recent quarter, Farmer Bros has $26.39 million in total cash and $105.91 million in total debt. The company enjoys a 3-year revenue growth rate of 3.06% and a 5-year revenue growth rate of 2.44%.

Spot Coffee (SPP) is a Canadian company that designs, builds, and operates coffee cafés throughout Canada and the United States. These cafés sell coffee, sandwiches, pastries, salads, and many other food and drink items. Most of the company’s revenue comes from sales at these cafés, licensing and franchise fees, and the wholesale of roasted coffee beans. Founded in 1996 and headquartered in Buffalo, New York, Spot Coffee has a market cap of $4.71 million and pays a dividend yield of 3.07%. Its stock has an excellent price-to-sales ratio of 0.53. As of its most recent quarter, the company has $6.89 million in total debt. Spot Coffee has a negative 3-year revenue growth rate of -4.22% but a better 5-year revenue growth rate of 1.44%.

Finally, you might consider Youngevity International Inc. (YGYI), a company that develops and distributes nutritional products and commercial coffee. It operates in two segments, Direct Selling and Commercial Coffee, but generates most of its revenue from the Direct Selling segment. It offers a wide variety of products including gourmet coffee, skincare and cosmetic products, nutritional supplements, sports and energy drinks, fashion accessories, digital products, and organic food. Youngevity was founded in 1996 and is based in Chula Vista, California. The company has a market cap of $24.26 million and does not pay a dividend. The stock has an excellent price-to-sales ratio of 0.13 and has a price-to-book ratio of 0.43. As of its most recent quarter, Youngevity has $7.27 million in total cash and $24.42 million in total debt. The company enjoys a 3-year revenue growth rate of 1.23% and a much better 5-year revenue growth rate of 13.66%.

Maybe a coffee stock will wake up your portfolio.

Disclosure: Author did not own any of the above stocks at the time the article was written.