In the last two trading sessions of last week, the share price of JAMN is making the appreciation that started all of a sudden at the beginning of this year look even more stable. On Friday, JAMN stock closed again 2.24% higher at $0.869 on a trading volume of over 864,000 shares. The number is more than seven times the average for the stock, and the volume accumulation observed recently could raise the price higher this week.
Last week investors have been encouraged further by the company’s new press releases to believe that its new line of business, the switch from coffee production in Jamaica into coffee distribution, will be a success this time. The abandoned former business model did not leave Jammin Java in the best financial shape and as of end October 2010 the company had zero cash and only intangible assets valued at $640,000.
Looking at the current market cap of almost $60 million, it seems that investors have extremely positive expectations about the future potential of the new “Marley Coffee” branding. As no paid promotions for JAMN have been revealed, this should at least make traders consider the option that the increased trading volumes could be deserved, and can now to bring the value of the stock back to the levels from the time of Marley Coffee LLC acquisition in March 2010.
At the end of last week, Jammin Java Corp. announced that it has appointed Ghanaian reggae star Rocky Dawuni to its Board of Directors. According the company’s statement, the large popularity and the social involvement of Mr. Dawuni is expected to build awareness and bring sales for the company. On the day before that, JAMN also announced that United Natural Foods Canada will be its distribution and marketing partner for Canada.
