Oct. 22 at 8:37 PM
Deep Value Daily –
$FARM (Part 1 of 2)
Current
$1.75 vs Alpha Spread → Worst Case
$7.43, Base Case
$9.72, Best Case
$15.65
Undervalue %: WC 76.45%, Base 82.00%, Best 88.82%
Country: USA
Pros: Legacy coffee roaster with national distribution network and specialty brands; gross margins trending upward (above 42%) and positive adjusted EBITDA improvement; strategic alternatives review could unlock value.
Cons: Nano-cap market cap (~
$38M), unprofitable operations, heavy service/food-service exposure in a weak macro environment and ongoing dilution risk.
Entry Idea: Consider entry on reclaim above
$2.50 with sustained volume; breakdown below
$1.20 would invalidate the upside thesis.
Stay disciplined, keep hunting, keep surviving.
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