Wow – What a tank on Jammin Java Corp (OTCBB: JAMN)! Investors have been selling this stock like it is going out of style and it is getting a little ridiculous. That’s why I picked up some shares yesterday below $.60. It seems that the shares short have recently decreased by almost 30%, but the current outstanding shares short are still over 2 million! It looks like a good portion of the shorter sellers do not want to get greedy and I don’t blame them.

This could be the time where JAMN starts a reversal; either that or I bought in too soon … The traders that are more risk adverse will want to wait for the first green day JAMN has. You can expect a massive short squeeze on this stock and as the chart is starting to show signs of a reversal; $1 is not out of the question here!

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The Chart Shows:

• JAMN closed down over 14% with a sharp tank in the morning and accumulation for the rest of the day. The 5 day moving average could potentially cross the 20 day fairly soon and the 50 day is all the way up around $.90!
• The RSI is starting to move out of oversold territory, but on the big chart it is still around 20. There is a ton of room for this stock to move!
• The MACD had a golden cross near the end of the day, which could mean that JAMN is ready for a possible reversal.

The Bottom Line

Now that the coffee stock craze is over, investors are selling off coffee stocks like mad! JAMN is more than 90% off its May high of $6.35 and this stock hasn’t tread this low since way before the craze in early February. A wise investor once told me something that has stuck with me phrased in a rhetorical question, “does it look cheap?”

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Good Luck,

Ian Decker

Disclosure: Large Position at $.58

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