|Bid||4.0000 x 2900|
|Ask||4.0700 x 3200|
|Day's Range||3.9100 - 4.1000|
|52 Week Range||1.3000 - 9.9900|
|Beta (3Y Monthly)||1.70|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of Aurora Cannabis (NYSE:ACB) haven't been looking so hot. In fact, on July 12 alone, shares tumbled more than 5%. But the fall did more than give investors a sour ending to the week. It sent shares through a key level of support and all but put the nail in the short-term coffin of pain.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsOK, maybe that's a little extreme. But the point is that ACB stock is not looking healthy on the charts. While that doesn't mean Aurora Cannabis can't bounce back and repair some of that technical damage, it makes it a lot harder to do so. From an investing standpoint, I like to blend technicals and fundamentals. When the technicals are not strong -- like with ACB stock -- we need to lean more heavily on the fundamentals. When the fundamentals are not the stock's strong point, we need the technicals to display strength. Unfortunately for Aurora Cannabis stock investors, while its end market looks to be a long-term opportunity, its fundamentals are not that strong in the short term. Without technicals to lean on, this stock could have more downside coming. Trading ACB Stock Click to EnlargeWith shares of ACB dumping on Friday, the stock lost a key level of support between $7 and $7.25. For the stock to even come close to repairing some of this damage, it needs to reclaim this former level of support. * 7 Dependable Dividend Stocks to Buy The risk here is two-fold, with the first being that Aurora Cannabis stock continues to head lower. The second risk is that it rebounds back up to the $7 to $7.25 range, which then acts as resistance. That would be bad news for the bulls. On Monday, ACB stock was rallying back toward that prior range support, so we should know relatively soon whether it can reclaim this area or if it will be found as resistance. At least we don't have to wait long to find out. Should ACB stock reclaim that key support area, it may run up toward $7.50 to $8. But here's the problem for traders looking to take ACB on the long side. Even if it reclaims prior support, it has to push through this next area too, before looking healthy again. And what's between $7.50 and $8? Just 2019 downtrend resistance (blue line), the 20-day, 50-day and 200-day moving averages. I'm not saying ACB stock is the worst equity to buy or that it's doomed. But until it repairs its technical damage and starts to put together more constructive price action for the bulls, it's a hard one to go long. Particularly as the PowerShares QQQ ETF (NASDAQ:QQQ) and SPDR S&P 500 ETF (NYSEARCA:SPY) are hitting new all-time highs. The breakdown in ACB stock was actually preceded by Canopy Growth (NYSE:CGC). CGC stock broke down ahead of ACB and led the way lower for a number of cannabis stocks. What's Up With Cannabis Stocks?So what's leading this charge lower? Because it's not just CGC and ACB stock. Cronos Group (NASDAQ:CRON), New Age Beverages (NASDAQ:NBEV), Aphria (NYSE:APHA) and others are all taking a very similar bearish setup. On the charts, this setup is known as the bearish descending triangle. Simply put, it's when trend is pushing shares lower against a static level of support. When support gives way, the bearish setup starts to play out, forcing share prices lower. The question is, why is the entire industry all setting up in the same manner? * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Things really started to unravel when Canopy Growth -- which many consider the "blue chip" stock of the bunch -- ousted its CEO. Canopy was volatile but stable that day, but has been under pressure all month since. It seems to have turned investors into sellers throughout the group, as the cannabis industry awaits a new catalyst. That's even as growth has been incredible, with many of these names turning in earnings reports of triple-digit revenue growth gains.While Aurora Cannabis missed analysts' estimates, it still churned out revenue growth of 289% last quarter. That said, most of these names -- ACB included -- do not generate profits and do not have the strongest financials. Thus, we need the technicals to behave better to justify a long position. For now, I'd wait before establishing a position in ACB stock. Long-term investors may opt to accumulate the stock, but I would rather wait until the stock looks healthier. One alternative would be a position in Constellation Brands (NYSE:STZ), which owns 40% of CGC, but has strong fundamentals and a good-looking chart to boot. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell held no position in any aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Does Aurora Cannabis Stock Chart Point to a Mid-Summer Plunge? appeared first on InvestorPlace.
Cannabis stocks need to fight their way out of their funk. That's true for names like Canopy Growth (NYSE:CGC) and New Age Beverages (NASDAQ:NBEV), but it's critical for Cronos Group (NASDAQ:CRON). CRON stock is not only down by a third since its March high, but is on the verge of breaking under a crucial technical support level.Source: Shutterstock Some -- perhaps most -- would argue that the shape of a chart is irrelevant. A chart's history shouldn't dictate its future. Rather, a company's results and prospects are reflected in its stock's movement.The fact is, however, the movement of a marijuana stock shapes the rhetoric about that company as much as it's shaped by the rhetoric. If Cronos stock slips any further, it would become alarmingly easy for the masses to view it as a liability.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Charting CRON StockIt's not difficult to see.After an overheated rally in January and February set the stage for significant profit-taking in March and April, the 200-day moving average line (plotted on the white line on the chart below) began to serve as a technical floor. It's not yet become a pushoff point, though, and it doesn't appear it's going to. Just within the past several days the sellers have tested the pivotal 200-day moving average line as support again, and it's failing to even modestly repel the effort.The 200-day moving average line is regarded by some as the most important of all the trend indicators. It's admittedly simplistic, but still has significant psychological implications because so many traders still see it as a make-or-break level. * 7 Retail Stocks to Buy for the Second Half of 2019 There's modest encouragement in the fact that the weakness since March's high has been on relatively low volume. That suggests there's not necessarily a great deal of conviction behind the selling; investors are just biding their time.Conversely, the fact that the other aforementioned names, like most marijuana stocks of late, are falling is a red flag. Group-wide movement tends to indicate longer-lived, philosophical doubt. Analysts Still in DoubtStill, Cronos Group stock is a standout for all the wrong reasons. Chief among them is the fact that among all cannabis stocks, CRON stock remains one of the analyst community's least favorite.As of the most recent look, analysts collectively rate Cronos at a little less than a Hold … tiptoeing into Sell territory. Rivals New Age Beverages and Canopy Growth, for perspective, are considered a Buy and something that's almost a full Buy, respectively. Hexo (NYSEAMERICAN:HEXO) is also closer to a Buy than a Hold. Click to EnlargeReasons for the pessimism range from lack of clear capital spending plans to a sheer lack of story in an environment where a company's story is a powerful marketing tool. Given that the $1.8 billion investment Altria Group (NYSE:MO) made in CRON stock has now been closed for weeks as well, one would have expected a more definitive direction for a partnership than we've seen yet.More than anything though, analysts still take issue with the stock's crazy valuation.Cronos sports a $4.8 billion market cap, and though revenue of $6.5 million was only a fraction of what the company could be driving in just a few quarters, even the most optimistic of plausible output levels will fall short of justifying that sort of price. It's a reality made even more amazing considering analysts have cared little about other similarly frothy valuations among cannabis stocks. Wait and See on CRON StockIt's certainly possible CRON stock could dig its way out of trouble and use its 200-day moving average line as a launchpad rather than a trigger for more trouble. The stock's yet to break below it. * 10 Stocks to Sell for an Economic Slowdown Those hopes are fading fast though, as the broader realities of the legal marijuana business sink in. The most overvalued names in the business also make for the most susceptible targets. That's Cronos, to be sure.Whatever's in the cards, it's certainly not a time to step into the pot name. Newcomers will want to wait for a little more clarity before doing anything.The world will get a big dose of that clarity in the first half of August, when Cronos will be reporting its Q2 numbers.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Cronos Needs to Show the Market Something to Pull Stock Out of Funk appeared first on InvestorPlace.
As a result, New Age Beverages now owns the licensing and distribution rights to some of the most popular drink brands within the United States. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more! “We have been extremely busy integrating BWR and New Age," said Brent Willis, New Age Beverages CEO.
Every investor in New Age Beverages Corporation (NASDAQ:NBEV) should be aware of the most powerful shareholder groups...
Aurora's focus on medical marijuana patients and international expansion could put these three companies on its buyout radar.
Aurora Cannabis (NYSE:ACB) is already Canada's biggest cannabis grower, and has set the stage to become one of the world's biggest by around this time next year. But on the other hand, ACB stock has made absolutely no progress since the end of 2017.Granted, it's not the only marijuana stock that's struggled to gain traction. Canopy Growth (NYSE:CGC), once the poster child for investing in marijuana stocks, has lost much of its luster, and as of earlier this month is looking for a new CEO. Neither New Age Beverages (NASDAQ:NBEV) nor Tilray (NASDAQ:TLRY) has been able to come close to holding on to its explosive gains reaped in September of last year.That's not the performance many latecomers to marijuana stocks were expecting. ACB stock, however, has been particularly disappointing.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 Although acknowledged by few cannabis investors, the reality is that marijuana stocks aren't paying off the way they were supposed to be paying off by this point.That could be about to change. Mortgaging the FutureInvestors don't own stocks for where they've been. They own the shares for where they're going.So the interest in marijuana stocks has been and remains understandable. Jefferies believes the global market for legal cannabis could reach $130 billion by 2029. Aurora Cannabis, which is building an international business, should benefit from that trend. For instance, late last year it shelled out nearly $300 million worth of ACB stock to acquire Latin American outfit ICC Labs.But Aurora Cannabis, perpetually cash-strapped, is using ACB stock in lieu of currency, diluting existing shareholders' stake.That's not terribly unusual. But it's not necessarily ideal to utilize the practice to the extent Aurora Cannabis has. As of the first quarter of 2017, 313 million shares of ACB stock were issued and outstanding. Now more than 1 billion shares of Aurora stock have been issued.The practice, in short, whittles down the potential reward of ACB stock without reducing its risk. That's not something all the owners of ACB stock signed up for. It's also likely that Aurora's growth-by-acquisition strategy will drive further dilution of Aurora Cannabis stock.Analysts, though, are still largely upbeat on ACB stock. Is a Payoff Imminent?The most obvious counter-argument to the practice is also the best one. That is, it takes money to make money. Without money, stock is the next-best option.If there's a positive side to all the expensive acquisitions though, it's yet to fully appear.But it may be too early to expect Aurora's investments to bear fruit. Canada only legalized recreational marijuana in October of last year, and the rest of the world is only at various stages of legalization.On the flip side, the cannabis movement is hardly brand new. Non-psychotropic CBD has been legal for years, even though interest in its potential continues to swell. By this point, there should at least be evidence that Aurora Cannabis, along with its peers, is en route to sustainable net earnings.And there is. By early next year, Aurora should be in the black, even if just barely.Cowen analyst Vivien Azer says the company could post its first positive quarterly EBITDA , which would also be the cannabis industry's first -- when it reports the results for its quarter that ended last month.Analysts can be wrong. It's also worth noting that no other analyst besides Cowen's Azer thinks that ACB generated positive EBITDA last quarter. Still, ACB is moving in a generally positive direction, and that should be positive for Aurora stock. The pace of forward progress still matters, however. Investors are growing impatient. Looking Ahead for ACB StockIn the simplest terms, this has turned into a horse race. Can the company start to show signs of enough life within the next few quarters to justify the dilution ACB stock owners are being forced to digest? The go-nowhere volatility demonstrated by Aurora stock for more than a year and a half says investors have doubts.The pros, however, remain undeterred.The opposing expectations are making Aurora Cannabis stock tough to trade, and ACB stock will likely remain erratic until it's clear Aurora can turn a meaningful profit or clearly can't. Dilution will only add to the erratic action, as traders attempt to price in that headwind.The bottom line on ACB stock is that if Azer's optimism isn't quite merited, the next several months could be as inconsistent as the past few have been. Don't get your hopes up, and remain patient. Aurora Cannabis stock is likely to morph into a long-term dance… a true investment, rather than a mere trade.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Analysts Say the Dilution of Aurora Cannabis Stock Will Eventually Be Worth It appeared first on InvestorPlace.
The valuations of marijuana stocks are generally off the charts. Tilray (NASDAQ:TLRY) stock sports a market cap of $4.5 billion while Cronos Group (NASDAQ:CRON) is at $5.3 billion and Canopy Growth (NYSE:CGC) trades at a hefty $13.9 billion. These valuations are reminiscent of the wild dot-com days when companies with minimal revenues were speculatively bid up, based on their potential growth opportunities.Yet there are still relatively cheap cannabis producers. Just look at New Age Beverages (NASDAQ:NBEV) stock. Consider that the market cap of NBEV stock is a mere $337 million. What's more, NBEV is trading at a relatively reasonable 3.4 times its sales (by comparison, red-hot marijuana stocks can easily have multiples of over 50 times their sales). Since October, New Age Beverages stock actually has been in a downward trend, going from nearly $10 to $4.66.Founded in 2010, NBEV began with a focus on healthy brands. According to NBEV's website, "While our core function is to deliver healthy alternatives to the planet, we believe companies have a responsibility to positively impact society and function as global agents of change. Our goal is to inspire positive shifts in the lives of those we reach by providing best-in-class 'Better for You' products & valuable content that motivates people to take ownership of their health and radically pursue their life's purpose."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 F-Rated Stocks to Sell for Summer That's a lofty mission. NBEV has drawn on science and innovation, including 11 patents, as it looks to accomplish those goals. For example, its flagship product is ENHANCED Recovery, which is a hydration beverage that uses micronutrient science.NBEV has been transforming itself recently by investing aggressively in the development of CBD-infused drinks. These beverages feature cannabidiol, or CBD, from the cannabis plant, which is a component of marijuana that does not produce highs. There have been indications that CBD can alleviate a number of medical conditions, including pain.Late last year, the company launched its first drink, called Marley (it's a reference to the legendary singer, Bob Marley). As should be no surprise, the launch supercharged NBEV stock.NBEV has also been aggressive when it comes to M&A. In December, the company acquired Morinda, which has a set of healthy beverages that are distributed across more than 60 countries. NBEV hopes that, by becoming a great platform for developing CBD drinks, Morinda will meaningfully boost NBEV stock.NBEV also bought Brands Within Reach, which has licensing and distribution rights to brands like Nestea, Volvic and Illy Ready to Drink Coffee. That deal will provide NBEV with exposure to large retail customers like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST).According to the press release announcing the deal: "BWR and New Age together will have the most extensive one-stop-shop of healthy beverages available to any foodservice or retail customer in North America, with an extensive low-cost national distribution and logistics footprint." The Bottom Line on NBEV StockThere are several analysts who are upbeat on the prospects of NBEV stock. Roth Capital has an $11 price target on New Age Beverages stock, while Compass Point has a $9 price target on the name.But I think the Street's enthusiasm about NBEV stock may be overdone. Most of NBEV's revenue comes from healthy/performance beverages, which is generally a relatively small, crowded niche.More importantly, the company's CBD opportunity is still in the early stages, and the CBD market's growth outlook is far from clear. Besides, large cannabis players like CGC, which is backed by Constellation Brands (NYSE:STZ), and Hexo (NYSEAMERICAN:HEXO), whose main partner is Molson Coors (NYSE:TAP), are also looking to enter the space. If anything, these companies seem much better positioned -than NBEV and are likely better investment opportunities than NBEV stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.Compare Brokers The post The Buzz May Be Over for New Age Beverages Stock for Awhile appeared first on InvestorPlace.
Asian Stocks Down, Europe Berates Iran on Nuclear Deal Chinese stocks (NYSEARCA:ASHR) are down this morning on news that President Trump didn’t actually promise Chinese President Xi Jinping a six-month hiatus on new tariffs, as widely reported in the media yesterday. So 25% tariffs on $300 billion Chinese goods coming into the US could come […]The post Market Morning: No China Promises, Democrats Debate, New Age Crossfire, Russian Stocks Bullish appeared first on Market Exclusive.
New Age Beverages Corporation (NBEV) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.
Prior low-level convictions for marijuana possession will be pardoned. Amid this news, one would expect marijuana stocks to run higher, but that’s not happening. Just like a doctor does X-rays to see what is going on inside the human body, investors can do an X-ray of marijuana stocks to figure out what is really going on.
New Age Beverages stock was up after the firm announced it is taking its CBD portfolio into Hong Kong. The move to the Chinese territory is the Colorado- and Utah-based company's first major international expansion. Other marijuana stocks were mixed.
The move onto the Nasdaq is the result of longtime planning, and a different approach than many American cannabis companies who have been relying on reverse mergers to enter the public marketplace.
New Age Beverages news for Tuesday about the launch of some new products has NBEV stock up.Source: Shutterstock New Age Beverages (NASDAQ:NBEV) has announced that it is now launching CBD products in Hong Kong and China. This initial launch of the products will have them being available in the areas of Hong Kong Island, Kowloon, and the New Territories.According to the New Age Beverages news release, this launch will start off with three products from its "NHANCED CBD" brand. These products are "CBD Body Cream at 150mg CBD strength, CBD Roll-on Gel at 200mg CBD strength, and CBD Oil at 500mg CBD strength."InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe New Age Beverages news also notes that these products will be available for purchase in a couple of ways. The first is through direct-to-consumer product consultants. The other way will be via an e-commerce website dedicated to the brand.New Age Beverages news for today also includes its plans to expand its CBD products to more countries. The company says it is preparing to launch these products in an additional 58 countries during the third quarter and fourth quarter of the year. * 5 Stocks to Buy for $20 or Less "In addition to this launch, we have already finalized formulas and are moving to production of CBD-infused beverages and dietary supplements, which we are launching in initial markets this year and will continue to roll-out globally as the regulatory landscape allows," Shon Whitney, Senior Vice President of Sales and Marketing at Morinda, said in a statement.NBEV stock was up 3% as of noon Tuesday. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post New Age Beverages News: NBEV Stock Climbs on CBD Products Launch appeared first on InvestorPlace.
New Age said in a press release it will launch its 'NHANCED CBD line of products in Hong Kong through the umbrella of its wholly owned Health Sciences Division. The product line up includes a CBD oil, CBD body cream and CBD roll-on gel.
Late last month I fleshed out some thoughts on Aurora Cannabis (NYSE:ACB), ultimately deciding that an investment in Aurora stock was mostly an investment in medical marijuana with an emphasis on Europe.Source: Aurora Cannabis It's a difference that still doesn't entirely matter. While Canopy Growth (NYSE:CGC) appears to be catering to recreational users while New Age Beverages (NASDAQ:NBEV) is, of course, looking to take an early lead in the CBD-infused beverage space, most of the major names in the business are still acting as a lot of things to a lot of people.The nascent industry has made the race a very messy and complex one. The proverbial land-grab of smaller names in the business has only made matters messier.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe legalized marijuana movement has matured enough to start making meaningful comparisons of all these companies. There's yet-another nuance to Aurora Cannabis that keeps Aurora stock at the upper portion of a list of marijuana stocks to buy. * 7 Top-Rated Biotech Stocks to Invest In Today Latin American MarijuanaAs yours truly predicted would be the case several times last year and earlier this year, cannabis is becoming a commodity and is increasingly priced as such. Though up recently, marijuana prices are broadly falling as its cultivation scales up, and the business is increasingly focused on low-cost production now that suppliers have to compete on price.My intuition about where newly-developed crops would be planted has so far been wrong, however. I widely assumed most new growth would actually take shape where it was sold and consumed, but it's actually been Latin America.That growth has been largely spurred and sponsored by pharmaceutical companies. Khiron Life Sciences is partnering with a research hospital in Colombia. Canada's PharmaCielo now owns a piece of Mexico's Mino Labs that ensures a supply of cannabis oil.Non-pharmaceutical players are also plugging into the low-cost and low-hurdle supply offered by growers in Latin America as well, however. Tilray (NASDAQ:TLRY), for instance, has acquired Chile's Alef Biotechnology, which grants the company a valuable production license.The moves, and others like them, put North American companies into a Latin American cannabis market expected to be worth $12.7 billion by 2028; most of that would be sales of medicinal cannabis.But, as laws progress and minds are changed, it's likely that restrictions currently making importing and exporting cannabis incredibly difficult will be eased.That makes Latin America a marijuana hub that Aurora isn't a part of. Except, it is. Aurora Stock and Latin AmericaThe company seems vulnerable on the surface. It's one of the largest names in the business in terms of production potential, with something on the order of 570,000 kilograms' worth of annual yield possible now that the MedReleaf deal is done. But, given its acquisition trend, the eventual output of as much as one million kilos per year doesn't seem outlandish.Since home-grown production is important to Aurora, the prospect of lower-cost production from Latin America is a concern.Aurora Cannabis acquired Uruguay-based ICC Labs in November. The deal not only gave Aurora 70% of the Uruguayan recreational market, but it also grants the new owners licenses to grow medical marijuana in Colombia and plugs it into an agreement with Mexico that allows imports of the commodity into that country.It's a foothold in a continent that 650,000 people call home and a continent that Europe's buyers are increasingly turning to in order to source cannabis, for a variety of uses. That's just another nuance that dovetails into the business Aurora has been developing.It's also a collective of countries that have been a little more progressive about cannabis than its neighbor to the north.What Cam Battley, Chief Corporate Officer for Aurora, meant when he commented, "We see ICC as the jewel of the South American market. This is going to be our anchor in South America and we have very big plans for that continent" still isn't exactly clear. But, it does suggest more deal-making and more market penetration are on the way. Looking Ahead for Aurora StockIt's still the early innings for the cannabis revolution. The dust is still settling, and a wide array of potential outcomes lie ahead.It is becoming clear, however, that Aurora Cannabis is emerging as one of the more deliberately and strategically-managed players of the marijuana movement.It remains focused on Europe and medicinal marijuana but is also establishing roots in a mostly-underserved South American market. Though not neglecting North America, it appears it's being selective, picking and choosing its battles in what's become an overwhelmingly competitive Canadian market. The U.S. market is ready to see some overflow too.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Diversification Is What Makes Aurora Stock a Solid Marijuana Play appeared first on InvestorPlace.
In a frothy market you can get a mighty high multiple if you're in the right niche. Like marijuana. That's the story of New Age Beverages (NASDAQ:NBEV). NBEV stock tripled last September after announcing a drink containing CBD. Its drinks even have a picture of the late Bob Marley on them.But pot isn't NBEV's real business. Canned beverages are its business. Things like coffee, tea and kombucha. Sodas with strange combinations like watermelon and coconut, the kind of stuff you'll try at a soda ranch on Route 66.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince that September explosion, where it briefly traded at almost $9, NBEV stock has lost its fizz, settling into a trading range of between $4-6 per share. But its market cap, $350 million, remains impressive for a drinks company with March quarter sales of $58 million, and no profit.But still. Pot! What NBEV Is Up ToNew Age Beverages has used its moment in the pot limelight to bulk up the product line. The highlight was this month's purchase of Brands Within Reach, for $6.4 million, only $500,000 of it cash. * 7 Top-Rated Biotech Stocks to Invest In Today Brands Within Reach has brand licensing and distribution rights for some mainstream beverages, like cold Nestea and Illy coffee. The idea is that this gets New Age in the door at mainstream retailers like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST), which then might look at its more esoteric brands.This came just six months after buying Morinda Holdings, another small company but with distribution in 60 countries. The idea there was to expand the market for its CBD products.The Morinda combination is already in the numbers due to be reported August 8, where sales of $70.8 million are expected. Following on the first quarter take of $58 million, that's good growth and, if the pattern persists through the year, it could lead to sales equaling the stock's current market cap by this time next year.That's important, because New Beverage CEO Brent Willis knows he's in the drinks business, not the pot business. He promised to focus on execution after buying Morinda, but the chance to buy into serious beverages with just stock was too good to pass up. What Next for NBEV Stock?Some analysts got very bullish on New Age after the Morinda buy, predicting imminent profits and a steady rise to $9 per share, which would be double its current level.InvestorPlace's Josh Enomoto disagrees. He sees the Brands Within Reach acquisition as a turn away from CBD, the source of its frothy valuation. He also sees the current brands as nothing special.Personally, I like the Brands Within Reach deal. NBEV now has both brands that can get it into the door of big retailers and global distribution for its CBD products. But drinks remain a risky business, a land of giants in which NBEV is a mouse. If Coca-Cola (NYSE:KO), Pepsico (NYSE:PEP) or even Keurig Dr Pepper (NYSE:KDP) decided there was something to this CBD thing, they could blow NBEV out of the water quickly. The Bottom Line on NBEV StockI think the owners of Brands Within Reach know all this, so there's an overhang of almost $6 million in stock, itching to be sold right now.Much of the rest of the common stock is held by speculators looking for a quick payout. Institutions hold just over 13% of the common, against almost 26% held by insiders. I think they will bail, too, at the first sign of bad news. * 7 Top-Rated Biotech Stocks to Invest In Today In other words, NBEV stock has a sell-by date, and execution alone won't stave it off.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. Compare Brokers The post NBEV Stock Is More Than Just CBD -- But It's Still Not Enough appeared first on InvestorPlace.
With a clear path to profitability and the growing possibility of a short squeeze, it's easy to see why one Wall Street pro is initiating coverage of New Age Beverages with a bullish call.
In recent weeks, New Age Beverages (NASDAQ:NBEV) has deeply expanded its reach. It has attracted a key retailer and acquired new products as well as a distribution network. However, NBEV stock continues to fall despite these developments. The shares are down more than 14% in the last month, compared to the S&P 500 index, which is off 1.3% in the same period.While these deals show progress in one sense, NBEV will remain a high-risk play until it can deliver results in the CBD-infused beverage market.At the beginning of the year, I described NBEV stock as a "plausible, but risky" path to CBD-related gains. It appears that the more time passes, the more that description comes true.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Deals Bring Benefits and ChallengesThe deal to bring its Marley+CBD Mellow Mood into Walmart (NYSE:WMT) stores carries with it both opportunity and risk. Yes, attracting shelf space in Walmart will boost sales by game-changing levels. However, if it fails to connect with shoppers, Walmart will not hesitate to remove it. Moreover, Walmart's obsession with cutting costs could make it a challenging client.The same holds true with its recent acquisition of Brands Within Reach (BWR). The deal carries with it licensing rights and distribution infrastructure. They happen to distribute well-known brands such as Nestea, Illy ready-to-drink coffee beverages, and Evian water. Analyst Michael Grondahl of Northland Securities agreed, saying this deal likely cost NBEV less than 1x revenue. According to Grondahl, BWR also appeared strong at stores such as Costco (NASDAQ:COST) and Publix.This deal solidifies NBEV's identity as a beverage company, bringing a diverse array of products under its umbrella. Moreover, the distribution network that comes with it leaves it better able to serve Walmart and later, bring its CBD-infused beverages to stores. * The 10 Best Stocks for 2019 -- So Far However, becoming more of a beverage company makes NBEV stock arguably less of a "marijuana equity." Hence, it could struggle more to attract the outsized multiples of a Canopy Growth (NYSE:CGC) or Aurora Cannabis (NYSE:ACB). Little's Changed for NBEV StockEven more than that is the viability of NBEV stock itself. In my previous article, I argued that buying NBEV could lead investors to find the next Monster Beverage (NASDAQ:MNST). It could also become the next Jones Soda (OTCMKTS:JSDA), a once-promising soft drink company which saw its fortunes almost completely fizzle out.Only time will answer that question. Still, the latest deals have done nothing to change that dynamic. Hence, the "plausible, but risky" description applies as much as ever.Hence, I do not recommend NBEV stock for a retirement account, but I see enough promise here for a speculative play. Like Monster before it, New Age Beverages also brings a new category to the market. Additionally, Wall Street forecasts that the company will turn profitable in the third quarter of this year.Analysts also believe that will translate into a yearly profit of five cents per share, taking the forward price-to-earnings (PE) ratio to just below 48x. That PE ratio appears reasonable given the predicted earnings growth of 113.2% this year and 80% next year. Competitive Threats Hamper NBEV StockHowever, the real worry lies in outside threats. It appears New Age Beverages stock will benefit from a first-mover advantage. The question becomes what happens when larger players respond. Coca-Cola (NYSE:KO) has so far denied interest in this cannabis-related market, even as the rumor mill speculates otherwise.However, Constellation Brands (NYSE:STZ) has partnered with Canopy Growth. Tilray (NASDAQ:TLRY) has allied with Anheuser-Busch InBev (NYSE:BUD). These multi-billion dollar companies have the needed resources to outspend this much smaller $325 million New Age Beverages, How NBEV stock holds up when these companies offer their CBD-infused beverages will determine its future. Bottom Line on NBEV StockNew Age Beverage's progress will not translate into significant gains for NBEV stock until it proves itself. Without a doubt, the Walmart deal and the Brands Within Reach purchase adds to the cache of New Age Beverages stock. However, this changes little for NBEV stock holders. No matter what the company does, it cannot shake the perception that it remains a high-risk play. New Age remains a small company that so far holds the lead in the CBD-infused beverage market. * 10 Stocks to Buy That Could Be Takeover Targets However, investors know that the largest beverage companies will eventually respond with their own offerings. This could return New Age Beverages to obscurity, or it could make it the next Monster Beverage. NBEV stock will not gain much traction until the public can see both sales and market share numbers.Still, if the Marley Mellow Mood beverages succeed, investors could see massive gains. This possibility makes NBEV stock a speculative play if nothing else.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 S&P 500 Dividend Stocks to Buy at Least Yielding 3% * 7 Stocks to Buy That Don't Care About Tariffs * 5 Healthcare Stocks to Pick Up From the Wreckage Compare Brokers The post Amid Change, Things Stay The Same For New Age Beverages Stock appeared first on InvestorPlace.
If you're a contrarian in the cannabis space, you're likely very intrigued with New Age Beverages (NASDAQ:NBEV). Not only is the underlying plant one of the hottest commodities in the market, cannabis is going mainstream. A particularly attractive subsegment is cannabidiol or CBD-infused drinks. With New Age Beverages specializing in this sector, NBEV stock immediately catches the eye.Others have embraced the idea of CBD beverages. Canopy Growth (NYSE:CGC) and Hexo (NYSEAMERICAN:HEXO) have secured deals with big-time beverage makers. But as InvestorPlace feature writer James Brumley noted, NBEV was the first to hit the market. Almost always, that's better than being the first to have the idea. And with the competition lollygagging, NBEV launched the Marley brand last fall.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSubsequently, NBEV stock soared from $1.53 to just under $10. That paradigm shift occurred over a matter of days. * The 10 Best Stocks for 2019 -- So Far But Brumley is cautious on the longer-term outlook for New Age Beverages stock, and for good reason. Management recently forked over some funds and possibly resources to acquire healthy-products maker Brands Within Reach. Supposedly, it's an "incredible deal." But to Brumley's point, we just don't know the specifics.That immediately raises suspicion. More critically, though, CBD-infused drinks are currently a tough sell. Although the concept is appealing, the retail market itself is filled to the brim with competitors. Plus, the market size is very modest.Investing heavily into this segment will seemingly yield very little reward. As such, investors took their profits and dumped NBEV stock after the announcement, with shares down 15% in the days since the June 3 announcement. To compare, the cannabis-focused ETFMG Alternative Harvest ETF (NYSEArca:MJ) is little changed while the beverage-heavy First Trust Consumer Staples AlphaDEX Fund (NYSEArca:FXG) is up almost 5% in the last few days. NBEV Stock is Fundamentally Stretched WideIn my view, New Age Beverages stock is an awkward play. Despite some obvious challenges, I believe in CBD-infused drinks for the long term.For one thing, the cat's out of the bag politically. In an unusually vitriolic time, both Republicans and Democrats have found surprising consensus in marijuana-related issues. While the federal government still classifies weed as a Schedule I drug, economic tensions also help the green sector in eventually overturning this classification.After all, President Trump can't keep playing hardball with China and Mexico without incurring domestic pain. And that translates into angry voters come 2020.Second, CBD specifically levers compelling evidence for medicinal effectiveness. Sure, medical doctors downplay this evidence because prescribing plants isn't exactly super-profitable. But they can't deny that many patients reported benefits with consuming CBD.Therefore, I'm willing to extend patience to names like Canopy Growth or Hexo. But NBEV stock? That's a tough one. If NBEV simply concentrated on cannabis-related products, I believe the investor community would give them considerable leeway. Cannabis is an unprecedented market, so it makes sense that it receives unprecedented flexibility.But NBEV stock isn't just a CBD competitor. Its acquisition of Brands Within Reach, which includes brands like Nestea and Evian, provides the proof. Instead, New Age Beverages seeks to dominate the broader healthy beverages market.In other words, NBEV has very normal ambitions. Because of that, investors will have normal expectations.One of those expectations is margins: prospective stakeholders will seek outsized profitability metrics. If you look at established beverage-makers like Coca-Cola (NYSE:KO), Pepsico (NASDAQ:PEP), or Monster Beverage (NASDAQ:MNST), they all feature strong margins.As a rule of thumb, beverage-makers should have on average higher margins than food companies. However, NBEV lags significantly in this department. No Outstanding Catalyst for NBEVAnother headwind I anticipate is that no outstanding catalyst bolsters the case for NBEV stock. I'm more convinced about this now after having looked at their website.Like any beverage company, NBEV has their core brands displayed front and center. The problem is, I'm not inspired by any of it. Nor have I heard of any of the brands they carry (outside their recent acquisition). * 10 Stocks to Buy That Could Be Takeover Targets Of course, my anecdotal observation isn't the end all, be all of anything. But I do a considerable amount of grocery shopping. Plus, I'm in the market for healthy beverages. If I can't recognize at least one of these brands, you gotta figure New Age Beverages stock has an uphill battle to climb.And this segues into my final point: I think NBEV stock has a credibility problem. They're competing in a very broad and saturated market. I'm not sure if they have the resources to withstand choppy waters that are surely coming.Although I like the CBD angle that New Age carries, I think there's too many questions. It might work out as a trade, but I'll be watching from the sidelines.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Fundamentally Unsound New Age Beverages Stock Is Too Risky appeared first on InvestorPlace.
New Age Beverages (NASDAQ:NBEV) CEO Brent Willis announced on June 3 that NBEV would acquire Brands Within Reach, a New York-based healthy products company. Brands Within Reach owns the brand licensing and distribution rights to several well-known beverage brands, including Nestea, Volvic, and Illy Ready to Drink Coffee. The owners of NBEV stock should focus on the deal's strengthening of New Age's distribution and logistics infrastructure, rather than the company's acquisition of the rights to more brands.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy That Could Be Takeover Targets Willis had this to say about Brands Within Reach:"Even though this comes with these globally recognized brand licenses, the bigger play is the whole infrastructure of people and warehousing and logistics and distribution footprint that we can drive our brands through," Willis told BevNET. "It's a much stronger organization. It's the foundation for putting more things through that *marketing) funnel," he added. However, while the acquisition is more about the talent NBEV is acquiring than the products it's getting, these new brands widen the number of better-for-you functional beverages it can offer its food service and retail customers. Over the long-term, that's positive for NBEV stock.In addition, it's important to point out that Nestea has brand awareness of 89% in the U.S. That high level of brand awareness is going to open a lot of doors for the rest of New Age's lineup of products at big chains such as Costco (NASDAQ:COST) and Walmart (NYSE:WMT) where Nestea is already a popular drink What Did It Cost NBEV?New Age paid $500,000 in cash and 700,000 shares of NBEV stock, while assuming $2.5 million in debt, for an enterprise value of $6.4 million based on a price of $4.85 per share for NBEV stock. The deal brings New Age's annual revenues to over $320 million and will raise its bottom line. It's not a big deal, and under normal circumstances, New Age would likely have passed on the transaction because it's still integrating Morinda, the direct-selling juice company it acquired for $85 million in December. "I told our board at our March meeting that we would probably go on an acquisition moratorium for a year while we're integrating Morinda, building these businesses, launching CBD, launching our Health Sciences division," Willis said after buying Brands Within Reach. "I told them we were going to focus on pure execution -- that lasted about 45 days. But this is just financially too good of an opportunity for us to pass up."The best acquisitions are often the ones that almost weren't made. This latest acquisition cost less than 2%of the market cap of NBEV stock. Most investors probably didn't hear about the deal. However, any deal that strengthens a company's distribution network and logistics is worth making. Kudos to Brent Willis for pulling the trigger. Future Growth Although New Age's Q1 results missed analysts' average expectations on both the top and bottom line, there's a lot to like about the company's financials.In Q1, New Age had a net loss of $1.62 million on $58.3 million of net revenue, 83% of the company's top line came from Morinda. On a year-over-year basis, NBEV's sales surged 404%. But excluding Morinda's revenues, its sales fell by 13% YoY. However, the launch of the company's CBD beverages portfolio in the second half of the year should help reignite its sales. While there's a lot of work to be done before New Age's portfolio of brands becomes household names, it's headed in the right direction. From a financial perspective, New Age went from negative free cash flow of $191,000 in Q1 to positive free cash flow of $11.2 million, and that doesn't include a $31.4 million gain from the sale of property. NBEV is still technically losing money, but the fact that it's generating positive cash flow is good news for the owners of NBEV stock. The Bottom Line on NBEV StockBrent Willis and the rest of the New Age team continue to make the moves necessary to build a national beverage company. Focusing on being a one-stop-shop for healthy beverages is a smart way to grow the company until one of its products becomes a hit. I continue to believe only speculative and aggressive investors should own NBEV stock. Once NBEV becomes profitable and one or more of its products takes off, then I think it's okay for less risk-averse investors to jump into New Age Beverages stock. For now, if you want to play the beverage game, Monster Beverages (NASDAQ:MNST) is still a better choice than NBEV stock. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post Latest Acquisition by New Age Beverages Will Strengthen Its Business appeared first on InvestorPlace.
Cronos Group (NASDAQ:CRON) hadn't been trading all that well lately. In mid-May, it looked like CRON stock was going to break out and move higher. But broad market selling pressure made investors risk averse and as many of you know, cannabis stocks aren't exactly a flight-to-quality trade.Source: Shutterstock However, Cronos stock could be getting a second chance. Shares are moving higher by almost 10% in Wednesday's trading session thanks to bullish commentary from Bank of America/Merrill Lynch. Analysts upped their price target from $13 to $20. They also hit CRON stock with a "double upgrade," going from underperform to buy. * The 10 Biggest Announcements From Apple WWDC 2019 The move follows Tuesday's 6.2% rally and just like that, Cronos Group stock is turning things around. At least when it comes to the stock charts. Should investors buy CRON with the hope that it goes to $20?InvestorPlace - Stock Market News, Stock Advice & Trading Tips Trading CRON Stock Click to EnlargeThe daily chart above looks a little busy, and I apologize for that. But at different times, different trends and range levels are in play. Cannabis stocks tend to be volatile and can send false signals -- both in the form of breakouts and breakdowns. That's not just CRON stock. It includes Aurora Cannabis (NYSE:ACB), New Age Beverages (NASDAQ:NBEV), Canopy Growth Corp (NYSE:CGC) and others too.So what does Wednesday's rally say about Cronos stock's trajectory? Shares have been stuck in a nasty downtrend since the stock topped out north of $20 in February.Tuesday's rally put CRON stock back near that downtrend mark, setting it up for a wonderful make-or-break situation. If shares can hold their gains on Wednesday, it will hurdle downtrend resistance in spectacular fashion.The question then shifts to, can it do the same thing with $16? This mark has played a role over the past few months, sometimes as support and at other times as resistance.It doesn't need to clear $16 right away to be okay though. If CRON stock can maintain $15.36, it will have reclaimed its 50% retracement for the one-year range, as well as the 20-day moving average. So perhaps a rally up toward resistance and a pullback into this range would be possible. And quite frankly, it wouldn't be unhealthy either.On the flip side, losing this range -- the 50% retracement and 20-day moving average -- would signal that perhaps CRON stock isn't ready to run yet.To get to $20, Cronos Group stock has to do two things. First, it needs to hurdle its 50-day moving average at $16.45. Then, it needs to clear the 38.2% retracement at $17.65. If it can do those two things, a run to $20 is possible. Bottom Line on Cronos StockSo should investors buy Cronos stock? To answer that, investors must remember two things: Speculative investment and long-term thinking.The cannabis industry is going through explosive growth. It's what got Constellation Brands (NYSE:STZ) and Altria (NYSE:MO) involved on the investment front, and it's what will attract more big-money investors over time. It's also what will convince well-known consumer brands to partner up with these companies for new products.That said, it will take time for CRON, CGC, NBEV, ACB, Tilray (NASDAQ:TLRY), Aphria (NASDAQ:APHA) and others to grow into their lofty valuations. Even by tripling and quadrupling their revenue, these valuations are still pretty stretched. It's what ties into our first point about CRON stock being a speculative investment. They all are, really.The cannabis industry has its eyes set on global expansion. Admittedly, many world governments are more open to cannabis than many investors would have suspected even just a few years ago. We're heading in the right direction in terms of approval, but regulatory risk is still there until we start clearing some major hurdles. * The 10 Best Stocks for 2019 -- So Far Personally, I find Canopy to be the blue-chip stock of the bunch. But with that being said, CRON stock is setting up nicely on the charts. We highlighted its reasonable risk/reward in the $13 to $14 range last month. Now moving out of that range, we need to see it hold $15.36 to show that it can maintain momentum and shake its downtrend.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Can Cronos Group Stock Really Run to $20? appeared first on InvestorPlace.
On Monday, CBD-infused drink maker New Age Beverages (NBEV) announced the signing of a definitive agreement to purchase Brands Within Reach (BWR). BWR owns key licensing and distribution rights in the U.S. for healthy positioned and fast growing beverages such as Nestea Ready to Drink teas, Volvic Natural Spring Water, Illy Ready to Drink Coffee in retail channels, Evian Natural Spring Water in the Natural Channel and Found Sparkling beverages , Kusmi Tea, Saint-Géron Sparkling Water and select natural and organic snacks such as Nature Addicts, Grand-Mere, Lucien Georgelin and La Mere Poulard. CEO and founder of Brands Within Reach, Olivier Sonnois, will become President of the Brands Division at NBEV.Northland analyst Michael Grondahl commented, "We believe Brands Within Reach TTM revenue was small and would characterize the acquisition as a little tuck-in acquisition. In addition, we believe NBEV referred to a combined $320M revenue platform which is revenue guidance for 2019 and we believe this is conservative as it includes the acquisition too. We believe NBEV paid well less than 1x revenues with a portion in stock. It sounded like BRW was strong at Costco, Publix and dollar stores and works with UNFI, a distributor that NBEV was also expanding with. In talking with management, it sounds like 2Q19 is progressing well and WMT is off to a solid start and it is still a little too early at 7- Eleven. Management was excited to layer in another acquisition to grow the business and drive scale."Grondahl reiterates an Outperform rating on NBEV stock with an $8.00 price target, which implies nearly 65% upside from current levels. (To watch Grondahl's track record, click here)Most analysts back Grondahl's confident take on the cannabis stock. Based on 4 analysts polled by TipRanks in the last 3 months, 3 rate a Buy on NBEV stock while one suggests a Hold.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on NBEV: Is It Finally Time to Drop New Age Beverages (NBEV) Stock? More recent articles from Smarter Analyst: * Evercore Continues to Hold a Bullish View on Bank of America (BAC) Stock * Tesla (TSLA) Stock Bulls and Bears Agree to Disagree; Needham Weighs In * Why Acreage Holdings Could Be a Huge Mistake for Canopy Stock * Contract Win in Italy Highlights the Edge in Aurora Cannabis (ACB) Stock