YYoungevity International Inc (NASDAQ: YGYI) is having an overwhelmingly strong day in the market today, and for good reason. The company has entered into a contract surrounding coffee sales that’s definitely proving to be a source of excitement for investors. Today, we’ll talk about the contract, what we’re seeing from the stock as a result, and what we’ll be watching for with regard to YGYI ahead.
YGYI Gains On Contract
As mentioned above, Youngevity International is having an incredibly strong start to the trading session this morning after the company announced that its wholly owned subsidiary, CLR Roasters, has entered into a big contract. According to the press release, CLR Roasters has entered into a purchase contract. As a result of the contract, the company will deliver approximately $7.5 million of green coffee for the 2018 selling season. The commitment is for Naturals coffee, which is grown in Nicaragua. In a statement, Ernesto Aguila, President at CLR Roasters, had the following to offer:
“We are optimistic about the potential for growth of our green coffee distribution business in 2018. This commitment from one of our green coffee distribution partners represents a 60% increase in volume of 2017. We are optimistic that we will also experience growth from our other distribution partners for this segment in 2018.”
The above statement was followed up by Dave Briskie, President and CFO at YGYI. Here’s what he had to offer:
“This new $7.5 million-dollar Green Coffee commitment represents a good start to the 2018 booking season. We experienced efficiency gains and revenue growth this year coming from our Nicaraguan-based operations. This has assisted us in strengthening our relationships with our Green Coffee Distribution partners which we anticipate will lead to stronger sales of green coffee in 2018. I am proud of our team’s efforts and contributions orchestrated by our local partners: Alain Hernandez,Marisol Silas and Ernesto Aguila, who assisted greatly in developing this business.”
How The Stock Is Reacting To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock as a result. Of course, with the positive news we saw out of YGYI this morning, we’re seeing big gains in the stock as the trading session begins. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:37), YGYI is trading at $4.79 per share after a gain of $0.49 per share (11.40%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on YGYI. In particular, we’ll be following the story surrounding the Green Coffee initiative as well as the rest of the news surrounding CLR Roasters. We’re also going to be following the company’s impressive growth among its robust product offerings. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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