Bubble Bursts Bitterly on Another Coffee Stock

Coffee Holding Co

opened with a precipitous drop this morning, reversing a nearly month-long climb. The stock closed at $29.35 yesterday evening and has since dropped by around 20% to trade near $23.50. Coffee Holding Co is a mid-sized coffee wholesaler that operates in the United States and Canada, marketing across demographics for both specialty and retail customers. They are specifically targeting smaller, under explored markets to find a lucrative segment for their product.

have been volatile lately, which may be par for the course given the recent wild fluctuations in commodities markets. Coffee is particularly vulnerable to unpredictable price swings due to the hardships of harvesting and shipping. Coffee Holding Co sells a lot of unroasted coffee to small roasters and then attempts to build strong support relationships with these customers. The price of Coffee Holding's stock continued to fall throughout Tuesday, approaching levels almost seen last week. With little fundamental reason for the initial run-up in the price of the stock, shares may continue to decline for quite some time.