|Bid||5.15 x 4000|
|Ask||5.18 x 3200|
|Day's Range||5.13 - 5.20|
|52 Week Range||1.30 - 9.99|
|Beta (3Y Monthly)||2.53|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
More than 21 million shares of the functional-beverage specialist are being sold short right now, a record high and a sevenfold increase over the past year. This is how short squeezes start.
My previous article warned investors that New Age Beverages (NBEV) has an overly promotional CEO that manages to always miss forecasts. The Q1 results were another repeat of the ongoing failures of the company.The promises of strong growth from health and wellness drinks via large distribution deals just never seem to materialize as forecast. Investors need to avoid any hype in this stock.Another MissFor Q1, New Age Beverages reported revenues of $58.3 million missing their own disappointing forecasts of just $60.0 million for the quarter. With so many questions about the promotional nature of the business, one now understands why the company was rushing out a $100 million offering before releasing Q1 numbers.The earnings release might show a revenue increase of 404%, but most of the sales gains came from the acquisition of Morinda that was completed on December 21. Morinda added ~$230 million in annual revenues and ~$20 million worth of EBTIDA. A more useful measure would’ve been pro-forma numbers that compared the business to last year as if the companies were already combined.New Age claims the revenue issue was related to industry complexities in the direct-to-consumer market in China, but the company just bought into the Morinda business so this remains troubling news. The Q2 guidance of only $55 million is outright concerning considering that analysts were up at $78 million in order for the company to ever reach the stated 2019 revenue goal of $320 million.Such a goal required average quarterly revenues of $80 million and the goal quickly becomes impossible with 1H revenues now targeted at only $115 million. The company has to reach quarterly figures of $100 million in order to meet the stated revenue goal.More Promises CFO Gregory Gold originally stated the company should do ~$65 million revenues in the quarter to only bring up the conservative $55 million goal. The company promises upside potential from the Chinese DTC market returning to growth, the national distribution deals with Walmart (WMT) and 7-Eleven ramping up and all upside from CBD products such as the Marley drinks.All of these promises should lead to revenues smashing original estimates, but for now the acquisition of Morinda has done nothing but hide that business is incredibly weaker than all of the promises. The CEO promised the CBD drink business has $50 million of pre-order and the potential for $100 million in revenues in the next 18 months, but investors should hold their breath.New Age did end the quarter with $75 million in net cash after accounting for debt and a future $25 million payment to the Morinda investors for the sale of an office building in Japan. The amount though isn’t large enough to keep the company from listing a at-the-market offering of up to $100 million. The company will aggressively sell shares when ever the stock rallies.TakeawayThe key investor takeaway is that investors need to see actual results from New Age Beverages before ever touching the stock. The company has as many excuses for poor numbers as promises for actually growing the business.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. More recent articles from Smarter Analyst: * Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy * The Green Organic Dutchman (TGODF) Stock -- Not Sinking Exactly, But Not Sailing Anywhere Fast * Is Boeing (BA) Stock a Buy Ahead of FAA Announcement?
Keurig Dr Pepper (KDP) reports strong Q1 earnings, backed by higher operating income and reduced debt. However, effects of changes in the Allied Brands portfolio and a calendar shift mar the top line.
The maker of healthy beverages said its gross revenue amounted to $60.5 million. At the same time, New Age Beverages posted a net loss of $1.62 million, down from a loss of $2.65 million a year earlier. New Age Beverages is in the process of significantly expanding its market presence and integrating Morinda, a beverage company it acquired in December.
Investors need to pay close attention to New Age Beverages (NBEV) stock based on the movements in the options market lately.
New Age Beverages (NASDAQ: NBEV ) will be releasing its next round of earnings this Thursday, May 9. For all of the relevant information, here is your guide for Thursday's first-quarter earnings announcement. ...
AB InBev (BUD) reports strong organic sales growth and top-line beat in first-quarter 2019 on strong volume growth, global premiumization and ongoing revenue-management initiatives.
Monster Beverage (MNST) posts top and bottom-line beat in first-quarter 2019, driven by strong sales for the Monster Energy brand energy drinks and the launch of Reign Total Body Fuel.
News from New Age Beverages (NASDAQ:NBEV) that it had signed distribution deal with Walmart (NYSE:WMT), its first national arrangement, couldn't help but put some fizz in the NBEV stock price. New Age Beverages stock gained 38% on April 8 on the announcement. InvestorPlace - Stock Market News, Stock Advice & Trading Tips"This is just the first initiative that we expect to do with them on the Marley brand and other New Age products on which we are in active discussions," said Craig Thibodeau, New Age's VP of Key Accounts, in the press release. It's a big deal for sure. And Walmart expects a lot, as InvestorPlace contributor Will Healy noted in January, advising that all owners of NBEV stock might want to reconsider their expectations in the weeks and months ahead. CBD Drinks Opportunity"I think the speculation lies in company execution more than in its product," Healy wrote January 29. "The Tilray-InBev alliance focuses on research. Also, the investment by Constellation Brands (NYSE:STZ) in Canopy Growth (NYSE:CGC) has not yet brought a CBD-infused beverage to market. Hence, NBEV appears poised to take the first-mover advantage."Healy was speaking about New Age's Marley+CBD Mellow Mood brand and its opportunity to capture the first-mover advantage in the CBD-infused beverage market. He's right. It does have a vast opportunity available. That's why I suggested in December that NBEV could be the next Monster Beverage (NASDAQ:MNST). * 7 Dividend Stocks That Could Double Over the Next Five Years "I see a ton of similarities between New Age and Monster," I wrote" Dec. 21. "That said, a lot has to go right for New Age to move from Monster-wannabe to the real deal. It's also important to remember that the drinks won't have THC in them so the novelty or desire to try won't be nearly as great." Avoiding One-and-DoneNew Age has got to execute on the Walmart deal, or it could be one and done for the company. I can remember a friend of mine in the specialty apparel business being reluctant to enter into an agreement with Walmart because the expectations get ratcheted up exponentially. If you don't perform, your products are off the floor. Not to mention Walmart drives a hard bargain when it comes to wholesale prices. If New Age doesn't do huge volume with Walmart, it will face a significant loss and will lose its first-mover advantageThe stakes are real.Just four days before the Walmart deal, New Age announced a distribution deal with Hudson News, the folks who run all the airport newsstands, that puts the company's products in more than 15,000 outlets across the Northeast and select key national accounts.All great news. But you've got to execute because Walmart and Hudson won't hesitate to cut New Age loose if they aren't delivering the salesMonster executed at a very high level. Can New Age do the same? Losses Will Be SignificantIn the fourth quarter, New Age's revenues were almost $14 million, ahead of the consensus forecast of $13.54 million. That was the good news. The bad news was that its operating loss more than doubled to $10.1 million from $4.9 million in Q4 2017. Thanks to the Walmart deal and NBEV's $85 million acquisition of Morinda Holdings, CEO Brent Willis expects revenue to grow to around $320 million in 2019. Of course, he didn't say how much it will lose. As I see it, New Age will lose plenty. In 2018, it had an operating loss of $19.4 million on $52.2 million in revenue. That's up considerably from a $6.3 million loss in 2017 on approximately the same amount of revenue. So, if New Age had an operating margin of -37% in 2018 and you extrapolate that to 2019, its operating loss could be over $100 million in 2019. I say "could" because it's unlikely. * 7 Cloud Stocks to Buy Now A more realistic figure for a 2019 operating loss would be around $60 million or three times last year's operating loss. Now, if the Walmart deal gains traction, it's possible that the operating loss will be smaller than $60 million, but I wouldn't bet on it. Do You Get What I'm Saying About NBEV stock?Depending on how you definite small-cap stocks, NBEV stock is either a small small-cap or a large micro-cap. Either way, it's a money loser. On the plus side, New Age Beverages has some exciting brands and potentially lucrative distribution deals. On the downside, its CBD drinks will be competing with an increasing number of competitors, many of them with greater financial resources. I do like NBEV stock as a speculative play, but until it gets more on the bone from its strongest brands, only those who can afford to lose their entire investment should be thinking about New Age Beverages stock at this point. For everyone else, buy Monster Beverage and accept reasonable returns and a much lower level of risk until New Age is making money. Then buy. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 7 A-Rated Stocks That Are Under $10 * 3 Scorching Hot Bank Stocks to Consider Now * 10 Stocks to Sell Before They Give Back 2019 Gains * 7 Stocks to Buy That Ought to Buy Back Shares Compare Brokers The post There's A Big 'If' Ahead Of New Age Beverages Stock Climb To $10 appeared first on InvestorPlace.
New Age Beverage Corporation (NBEV) closed the most recent trading day at $5.47, moving -0.91% from the previous trading session.
The expansion of the deal follows the successful growth of a partnership that began in 2017, when New Age acquired the licensing rights for Marley drinks. Since then, New Age has overseen the development of additional product offerings like Organic Marley Mate and Marley Cold Brew. The company said the remaking of Marley's Mellow Mood Relaxation Drinks paves the way for the launch of the brand's Marley+CBD in 2019.
Boston Beer's (SAM) first-quarter earnings and sales gain from strong shipment volume and depletions growth. The company perks up shipments and depletions view for 2019.
Coca-Cola's (KO) first-quarter earnings and sales top estimates, benefiting from organic revenue growth across all segments as well as execution of growth strategies.
New Age Beverage Corporation (NBEV) closed the most recent trading day at $5.26, moving +1.15% from the previous trading session.
PepsiCo's (PEP) first-quarter 2019 results gain from strong operating performance at international divisions, and North America snacks and beverage businesses. The company reiterates view for 2019.
PepsiCo (PEP) buys the CytoSport business from Hormel Foods for $465 million. Muscle Milk and Evolve brands are likely to enhance PepsiCo's nutrition portfolio.
Cannabis stocks were mostly lower Monday, as investors moved to the sidelines to await the fate of a bill that aims to provide protections for companies in states that have legalized weed.
The U.S. spirits market is worth a total of 44 billion dollars and is expected to grow by 6% each year until 2022. Roberto Ramirez Laverde, BACARDÍ North America VP, weighs in on the changes in the industry and the company's 'responsibility' to bring versatility to its rum portfolio, such as its new BACARDÍ lime flavor.