Stocks of the Most Widely Consumed Psychoactive Substance in the World

Can you guess what 'the most widely consumed psychoactive substance in the
world' is? It's not marijuana or cocaine. It's not alcohol (is alcohol
psychoactive?). It is coffee. According to an article in the Public Library of
Science Genetics Journal , there is statistical evidence that the consumption of
caffeine may be an inherited trait based on genetics, not just due to
demographic and social factors. (Thanks to Casey Research for fining this
study.) Coffee drinkers are consuming about seven million metric tons of coffee
every year. With this much demand, investors should take a look at the companies
involved in the coffee industry , of which there are about ten, according to the
list at WallStreetNewsNetwork.com. Starbucks (SBUX) is the largest coffeehouse
company in the world, operating in 50 countries with over 17,009 stores
worldwide. The stock trades at 20 times forward earnings and pays a yield of
1.5%. Earnings for the latest quarter were up 43.5% on an 8% increase in
revenues. Caribou Coffee Company, Inc. (CBOU) is another, albeit smaller,
coffeehouse operator which trades at 20.3 times forward earnings. This Minnesota
based company has over 500 coffeehouses. Earnings for the latest quarter were up
45.9% on a 1.8% increase in revenues. Coffee Holding Co. (JVA) is a roaster of
wholesale coffee which markets wholesale green coffee, private label coffee, and
branded coffee in the United States and Canada. The stock trades at 10.1 times
forward earnings and has a favorable yield of 2.3%. The iPath DJ-UBS Coffee TR
Sub-Index ETN (JO) is an exchange traded fund which has a goal of tracking the
Dow Jones-UBS Coffee Total Return Sub-Index. It has had a one year total return
of 85.5% and a year-to-date return of 10.5%. For a free list of coffee stocks ,
which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was
written. By Stockerblog.com