Wait and see? For what? This thing is dead. You lost everything. Now go back to carrying Gomes' #$%$ bucket on Miami Beach. Lol!
Now just 2 cents away from my initial price target. Then it bases for a while. Then continues to plummet later this summer. Luckily for you guys, stocks can't go below $0. Otherwise this one surely would. Congo dog!
Full-time on paper. How much time does he spend on all the other companies he's running? Being CEO is either a 24 hour job or else it's part-time in my book.
You have a make-believe answer for every negative aspect of this company. Who's feeding you this subterfuge I wonder? "It's actually a good thing when a CEO has no stake in his own company". Now I've heard everything! lol. I should make a list of all the red flags but there is a character limit on these boards.
He owns zero shares and zero options. He hasn't even filed a Form 3 with the SEC. Look it up if you don't believe it. And on the next conference call (if there ever is one, considering they blew off investors in Q1), ask the guy how many other businesses he is running concurrently on the side. You may be surprised what you hear.
"You'll see the SEC filing when the deal closes."
Oh sure, just like we'll see the new part-time CEO's compensation package and employment contract in an SEC filing. The red flags keep piling up so fast I can't even keep track.
How about you post the relevant SEC filing that backs up your claim that Neil and Julie relinquish their preferred voting rights? That would be a material change in corporate structure. Surely you have some documentation?
From today's Schedule 14C filed with SEC:
"Including the common and preferred shares, Neil Fallon possesses the combined voting power of 118,189,639 shares of common stock, which is equal to 84.2% of the voting power of the common and Series A Preferred stock."
"Including the common and preferred shares, Julie Anderson possesses the combined voting power of 14,231,236 shares of common stock, which is equal to 10.1% of the voting power of the common and Series A Preferred stock."
Wall St. Fund managers won't take this stock seriously without any real voting rights. Retail investors won't care about the lack of common representation, but don't expect any big institutional support in the long term.
Read the article. The author repeatedly uses "Xing" as a euphemism for New Age in its entirety.
"The combined companies believe the partnership will quickly realize about $7.5 million in combined cost savings and revenue expansion in the next 12 to 18 months, with Xing’s sales force driving Bucha through its broader distribution profile, according to Willis."
As for Xing, “We’ll have a good partner who can help us strategically,” said Tom Lebon. “It gives us the money to start doing marketing and the things we haven’t been able to do out there.”
"The Lebons have been shopping Xing for the past few years, looking for a way to buy out Carney, an aging co-founder of Pizza Hut who financed the brand’s early growth. Xing is sold in 40 states and internationally, with retail information firm IRI showing sales of close to $14 million in the 52-week period ending Jan. 24, 2016 (those sales totals cover Supermarkets, Drugstores, Mass Market Retailers, Convenience Stores, Military Commissaries and Select Dollar and Club Chains)."
"Combined sales isn't $16 million plus $7.5 million. It's $50 million plus $7.5 million."
This is in dispute. The New Age Facebook page has a link to an article in which the CEO states 2015 revenue as $16 million plus $7.5 million synergies. This company can't even get the story straight. Sheesh.
Very fishy indeed! I think I will send the SEC a note to look into this activity. So obvious it's laughable.
"...a jump from 15 million to 25 million O/S is not a 20-fold increase."
No, but 50+% dilution is huge by any standard. The 20-fold increase refers to the size of revenues.
"...At $2.00 a share, the stock would be dirt cheap at 1X sales."
There is a discrepency here. If you go to the New Age Facebook page, there is a link to an article yesterday in which the CEO says the added revenue + synergies would total around $23 million. And yet the press release by ABRW claims that New Age is a "50 million dollar company". So you have to ask yourself what metric are they using to arrive at $50 million? I don't think it's revenue. And assuming $23 million is the accurate revenue number, then a $2.00 share price would equate to 2x sales, which is getting very pricey for a micro-cap OTCBB stock loaded down with huge debt. Stop trying to value this company like an S&P 500 company, because it's not.
We'll have to wait and see how much bank debt they've been carrying. Good thing they are forced to report accurate financials on the combined company to the SEC, otherwise investors would be completely in the dark. In the meantime enjoy the hype.
How much old debt will ABRW assume from the dinosaur company? $20 million? $40 million? Give me a number. You don't really believe ABRW bought that company for peanuts unless it came with a boat load of debt, do you?
Did you factor in the amount of debt that comes with the acquisition? ABRW takes control of their debt as well as revenues. But nobody wants to talk about that, and you won't find that number in the press release because it must be HUGE!
Yeah, he bought a company 20 times the size of ABRW, and in doing so, he dilutes the so-called "hyper-growth" by 20 fold. Now you're stuck with a large dinosaur with stagnant top-line growth that masks any Bucha growth. Even if Bucha grows sales 500%, it will be a meaningless drop in the larger bucket when you take into account the massive share dilution and mega debt.
I listened very carefully to the conference call. And therein lies the problem. The CEO was very clear that the only way he would agree to lead another beverage company was if it was in a hyper-growth space such as Kombucha. And here it is a month later, and the first thing he does is go out and acquire a LARGER company that only sells beverages in slow growing markets. That is a red flag my friend. The CEO's motives for signing on to lead ABRW are no longer valid. Heck, he even changed the name of the company to Bucha. And now three weeks later they change the name again to accommodate all the new slow growing brands in the portfolio. Talk about lol! This guy is riot. Don't be surprised if he sells off the Bucha brand in a few months when he realizes it will not gain traction on a national level. It is strictly a west coast fad. And this quick acquisition indicates he understands the mistake. Now if only he would tell the truth to investors. Don't hold your breath.
Sentiment: Strong Sell
Bad news. Say goodbye to all that hyper-growth that the new CEO was bragging about. He just watered down the fastest growing drink category (Kombucha) by adding two dinosaurs (tea and water). Nice going. Lol!! Sell at the top now before stock goes back to $.40 range.
"The Kombucha category is a $529 million segment growing at around 40% per year. RTD tea is now a $6.6 billion category in the US alone growing at 3.6%, and Functional Waters is a $17.2 billion segment growing at 11.5% per year".
Sentiment: Strong Sell