# Ten Peaks Coffee (TPK)



## MIRationale (Feb 11, 2018)

Founds this gem of a Canadian Stock. Great growth potential along with a solid dividend. Surprised that this company doesn't have a bigger following. Interested to heard if anyone else has this in their portfolio and what your thoughts are.

There's an article on Seeking Alpha that goes into some details on the company and future plans: "Ten Peaks Coffee: Compelling Fundamentals And Valuation With An Attractive Dividend Yield". (Can't post links here unfortunately so you'll have to find on your own on seekingalpha.com


----------



## agent99 (Sep 11, 2013)

MIRationale said:


> Founds this gem of a Canadian Stock. Great growth potential along with a solid dividend. Surprised that this company doesn't have a bigger following. Interested to heard if anyone else has this in their portfolio and what your thoughts are.
> 
> There's an article on Seeking Alpha that goes into some details on the company and future plans: "Ten Peaks Coffee: Compelling Fundamentals And Valuation With An Attractive Dividend Yield". (Can't post links here unfortunately so you'll have to find on your own on seekingalpha.com


I think that there was an earlier thread about this company. I bought a little for my wife's TFSA (She likes decaf coffee!). I may be wrong, but I believe that this is same company or at least a successor to the Swiss Water Decaffeinated Coffee Company which was at one time an income trust. Here we go: https://www.myglobalbizz.com/2014/03/swiss-water-decaffeinated-coffee-income-fund/ (says it was formed in 2002)

So SWDCC has been around for quite a while. Don't think it has made anyone rich! It does pay a reasonable dividend. It is expanding production. And decaf coffee is becoming more and more popular. So maybe just a nice little niche investment to play with. But we don't expect to make our fortune on this one


----------



## kelaa (Apr 5, 2016)

This post looks fishy. Why does the moderator allow something like this for a first-post? 

To the forum members, TPK is a micro-cap company ($64 million). That is both a warning and a statement of its potential to run up 100% in a matter of months. I look around at stores and hotels and do see their product, so they do have market presence.


----------



## agent99 (Sep 11, 2013)

kelaa said:


> This post looks fishy. Why does the moderator allow something like this for a first-post?
> 
> To the forum members, TPK is a micro-cap company ($64 million). That is both a warning and a statement of its potential to run up 100% in a matter of months. I look around at stores and hotels and do see their product, so they do have market presence.


It does look fishy. I should have noticed that! 

When the company was first listed in 2002, I think it had a market cap of something like $44Million. In 2008 just before the income trust and general market crash share price was higher than it is now. It then floundered for quite a while. I don't think we will see a double on this, but hope you are right!

https://web.tmxmoney.com/quote.php?qm_symbol=TPK


----------



## OnlyMyOpinion (Sep 1, 2013)

Could be pumping, but this post by MIRationale a few days ago on stockhouse made me think they were legitimately looking for opinions:
http://www.stockhouse.com/companies/bullboard/t.tpk/ten-peaks-coffee-company-inc?postid=27501180


----------



## Beaver101 (Nov 14, 2011)

Held this stock since 2011 and still holding ... a steady eddy. (Don't ask me how I picked this stock other, threw a dart? picked out from a hat? or that I'm a coffeee-lover/addict.)


----------



## kelaa (Apr 5, 2016)

agent99 said:


> It does look fishy. I should have noticed that!
> 
> When the company was first listed in 2002, I think it had a market cap of something like $44Million. In 2008 just before the income trust and general market crash share price was higher than it is now. It then floundered for quite a while. I don't think we will see a double on this, but hope you are right!
> 
> https://web.tmxmoney.com/quote.php?qm_symbol=TPK


My comment was more on micro/small caps in general. They can move, they can move fast, and they can move prior to there being any publicly available information (for example, image this stock moves 40% over a few weeks for no apparent reason, and then TPK announces a supply deal with McDonalds for their USA operations). People who get antsy when their Fortis goes +/- 10% are not the right investors for these small companies. 

I don't see why this cannot go back to 10 - 12 dollar per share in the next 1 - 2 years.


----------



## agent99 (Sep 11, 2013)

I thought I had read an article here about TPK, but maybe not. This is a good review along with quite a number of comments!

https://www.reddit.com/r/investing/comments/6rx3gd/ten_peaks_coffee_good_buy/


----------



## jargey3000 (Jan 25, 2011)

hmmmm. I might go "all in" on this one!.....


----------



## Beaver101 (Nov 14, 2011)

^ Hmmmm? ... JUST how many "all-ins" can you turn? Aren't you "all-in" elsewhere as in WEED, NINE or maybe it IS the weed that causing you to go '"all-in'" high?! :wink:

On a serious note, this one makes up about 10% of my registered portfolio which is, hand in hand with sweetner RSI Rogers Sugar (another steady eddy). Should consider buying some of this for a non-registered ... buy hold and hope to prosper!


----------



## MIRationale (Feb 11, 2018)

Funny how some people here will attack the poster and claim "pumping" and "fishy post" when the initial question posted on the thread is asking for opinions on the stock vs. claiming that this will pay for your retirement. 

Do you have anything useful to say about the fundamentals of this company beyond "this is micro cap and that's a warning sign"? Are you implying that micro caps don't ever grow? 

I don't think anyone is claiming that this stock will double. The post clearly says that this is a dividend stock with potential to grow due to undervaluation.

Thanks to the people who have provided actual thoughts on the company.


----------



## kelaa (Apr 5, 2016)

MIRationale said:


> Funny how some people here will attack the poster and claim "pumping" and "fishy post" when the initial question posted on the thread is asking for opinions on the stock vs. claiming that this will pay for your retirement.
> 
> Do you have anything useful to say about the fundamentals of this company beyond "this is micro cap and that's a warning sign"? Are you implying that micro caps don't ever grow?
> 
> ...


This is a community. How about you introduce yourself or contribute something? We can't tell if you are trying to pump the stock, trying to promote some Seeking Alpha account, trying to get answers for some business class assignment, or you are a genuine investor.

I was warning people that as a microcap, the investment mindset is very different than that for the large-caps.

Do you have trouble with reading comprehension?

Why don't you contribute some fundamental analysis? Last financial report had trailing 9 month P/E of 11 - 12. Why do you say this is undervalued?


----------



## MIRationale (Feb 11, 2018)

kelaa said:


> This is a community. How about you introduce yourself or contribute something? We can't tell if you are trying to pump the stock, trying to promote some Seeking Alpha account, trying to get answers for some business class assignment, or you are a genuine investor.
> 
> I was warning people that as a microcap, the investment mindset is very different than that for the large-caps.
> 
> ...


Thanks for your comments.

I am not sure why I need to introduce myself or contribute anything when all I am seeking is people's opinion on an article. I would expect the savvy investors here to be rationale enough to judge a company by its fundamentals and figure out when someone is trying to pump. Please let me know what leads you to believe that I am trying to pump or promote an account. Whats the harm in trying to get answers on a class assignment?

Please let me know where I said that the stock is undervalued. I was pointing to the article which seems to suggest that the stock is undervalued. So do YOU have trouble with comprehension? Not sure how you are benefiting this community by starting your comments attacking others motives and not actually providing any opinion on the question being posed.

In terms of contributing fundamental analysis, I POSTED AN ENTIRE ARTICLE FOR YOU TO CONSIDER!!!

Anyhow, I don't want to argue with you any further. I stand by my previous comment that you have contributed nothing to this thread that would benefit the community here.


----------



## kelaa (Apr 5, 2016)

The company has since the last posting changed its name to Swiss Water Decaf Coffee, ticker SWP. 

Heavy volume on SWP today, 10x the 10-day average, causing it spike 12.3%. No news, as is typical of the micro / small caps. I wonder if some fund is building a position, or if it secured a big contract ala McD US operations or what not. In terms of coffee as a commodity, coffee prices are at the lowest since 2011.


----------



## l1quidfinance (Mar 17, 2017)

I looked at this a few years back maybe 2014

It screened exceptionally well on various metrics but I never did pull the trigger. The market cap was what kept me away. 
I was more interested then as Ten Peaks and haven't looked at it since the name change.


----------



## GalacticPineapple (Feb 28, 2013)

l1quidfinance said:


> I looked at this a few years back maybe 2014
> 
> It screened exceptionally well on various metrics but I never did pull the trigger. The market cap was what kept me away.
> I was more interested then as Ten Peaks and haven't looked at it since the name change.


Problem with this stock has always been the same - no one goes out for decaf.


----------



## agent99 (Sep 11, 2013)

GalacticPineapple said:


> Problem with this stock has always been the same - no one goes out for decaf.


You must be young  All the old people I know only drink decaf. And yes, they buy it when they are out at Timmies, Starbucks etc. And even in restaurants where they may have it already brewed or will make it especially for you. It would make a lot of sense for restaurants to have commercial Keurig machines for those that order decaf. 

A Google search shows that it is not just the oldies that buy decaf:



> According to the 2017 National Coffee Association (NCA) report, decaf consumption in the US is led by 18-24-year-olds (19%). And while 25-39-year-olds fell into third place place this year, in 2016 they led the trend at 20%.
> 
> What’s more, 66% of consumers surveyed agreed that “It’s important to limit my coffee consumption”. And among 25-39-year-olds, 68% say it’s important limit their caffeine intake.
> 
> In other words: want to attract millennials? Having decaf on the menu could be very helpful. And you really do want to attract millennials.


My wife (who only drinks decaf) has Swiss Water in her RRIF portfolio. I bought it for her, more as a joke than anything. But it does pay a dividend and has potential upside once their new plant gears up to capacity.


----------



## GalacticPineapple (Feb 28, 2013)

agent99 said:


> You must be young  All the old people I know only drink decaf. And yes, they buy it when they are out at Timmies, Starbucks etc. And even in restaurants where they may have it already brewed or will make it especially for you. It would make a lot of sense for restaurants to have commercial Keurig machines for those that order decaf.
> 
> A Google search shows that it is not just the oldies that buy decaf:
> 
> ...


Fair points - let me rephrase. Not enough people go out for decaf to move this stock in a material manner.


----------

