Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Swiss Water Decaffeinated Coffee Inc T.SWP

Alternate Symbol(s):  SWSSF

Swiss Water Decaffeinated Coffee Inc. is a Canada-based specialty coffee company and a green coffee decaffeinator that employs the Swiss Water Process to decaffeinate green coffee without the use of solvents, such as methylene chloride. The Company also owns Seaforth Supply Chain Solutions Inc., which is a third-party green coffee handling and storage operation providing integrated and efficient coffee handling services to Swiss Water and other coffee importers and coffee roasting companies who receive or store green coffee in the Metro Vancouver area. The Company operates in three geographical areas: Canada, the United States and other international markets. Its coffee brands include Equator Coffees, DOMA, Talking Crow Coffee Roasters, Three Keys Coffee, Roast House Coffee, Kuma Coffee, Numa Coffee Co., Bridge City Coffee, Java Pura Coffee Roasters, Savorista, Numa Coffee Co., Cafe Grumpy, Barista Alley, and Blue Spruce Decaf Coffee Co.


TSX:SWP - Post by User

Post by FormerHedgieon May 02, 2024 2:27pm
256 Views
Post# 36020021

CAUTINON - The last time the stock ran, ended in a FINANCING

CAUTINON - The last time the stock ran, ended in a FINANCINGA NOTE OF CAUTION - I have seen this pattern before.

I have owned this stock in the past and there was always so much promise but the stock was always range bound.  The last time the stock had a good run like this off of the back of improving revenues / profitability the did a financing. 

Following the financing, the stock sold off and was range bound for quite some time.  It seemed to me that in order to make it look like revenues / profits were going up that they pulled forward sales from susbesquent quarters (often referred to as channel stuffing). 

The problem is that when you pull sales forwared to the present, they don't need the product in the subsequent time frame so a good quarter is followed by some weak quarters.

I looked at the balance sheet and I was suprised to see the dramatic "improvement" in working capital items, especially inventories year over year.  It declined by 50%.  This suggest to me that the company was reducing working capital to support its case needs.  I suspect that after these attemps, they still need cash.

I will not be suprised at ALL to see a financing come imminently.  I think the last time it was lead by Cormark who bagged people using the same strategy.

Again just a note of caution.



<< Previous
Bullboard Posts
Next >>