Yesterday, Javalution Coffee Co (PINK:JCOF) released the steam valve of the trading session by issuing a press release which pushed the trading volume to an unbelievable record height. 4.3 million shares of JCOF were traded during the day, which is nearly 20 times higher than the daily average.
A trading volume surge of this size is rarely produced solely by a press release. However, there was no promotion listed in the Hotstocked database. Apparently, the hype from yesterday revolved around the announced deal between JCOF’s subsidiary, CLR Roasters and Aldi Inc. The deal was for an estimated $2 million private label roasting. [BANNER]
The strange thing was the fact that the announcement was released at 4:00 p.m EDT, or right at the end of the session. Apparently, the entities who generated the volume either have a powerful intuition on their side and foreboded the surge of JCOF, or frankly knew about the coming press release.
In fact, the company has entered into a bullish technical configuration recently. The signs were given by a positive curve of the 9-day moving average and an increase in the buyers’ power indicated by a surge in the positive DMI.
Another very strong factor which is very likely to have influence over JCOF stock is the overall juncture in the coffee industry sector. The general graph of the coffee sector indicates a formidable surge above the S&P index. In fact, many public coffee companies experienced a heavy spike at the beginning of May, most of which had large gap-ups in the graphs.
It appears therefore that JCOF is catching up with the sector when it started to climb at the beginning of April. Nevertheless, it seems that even those objective factors are not enough to explain the unbelievable jump of JCOF volume yesterday.
