|Bid||3.2100 x 4000|
|Ask||3.2200 x 3200|
|Day's Range||3.1800 - 3.2950|
|52 Week Range||1.6900 - 9.9900|
|Beta (3Y Monthly)||1.74|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.75|
It's been a tough summer for Hexo (NYSE:HEXO) shareholders. But for investors seeking exposure to the cannabis market, the price is nearly right for a less speculative investment.Source: Shutterstock I've said it before and it bears repeating, Hexo, along with competitors Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) or a New Age Beverages (NASDAQ:NBEV) face very real challenges despite the potential opportunity within the cannabis industry. Universally, the group is mired in losses as companies spend aggressively to gain market share. All the while, the opening up of new markets due to regulatory red tape remains much easier said than done.It's a tough combination that's resulted in supply dwarfing demand and a business environment which will undoubtedly see casualties. In large part these difficult realities are why cannabis stocks have cratered and why Hexo stock has lost more than 50% over the past four months. But turning your back on HEXO could be a big mistake.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact remains that Hexo is well-positioned for success within the niche edibles and cannabis-infused beverages market. With a partner in beverage giant Molson Coors (NYSE:TAP), Hexo maintains resources ranging from financial support to Molson's marketing, distribution and operational expertise. * 7 Best Tech Stocks to Buy Right Now Hexo stock's partnership isn't a guarantee of survival. For the reasons already stressed, it's simply too early to know if Hexo will ever be a viable business. But it would be unfair to not appreciate Molson Coors as a significant advantage as Hexo looks to build its brand in this up-and-coming, but still speculative market. Hexo Stock Weekly ChartHexo's technical wherewithal relative to its peers also makes it a standout in the cannabis space. Obviously, the deep corrective move over the past few months hasn't been pleasant. However, HEXO stock is technically unique. Shares remain in an uptrend supported by it's late April higher high pattern and today's higher low relative to its December bottom.With a small double bottom having formed on the weekly chart, HEXO is nearly ready for investors to buy. With this second pivot low finishing in a weekly hammer as of Friday's close, shares are in position to buy on confirmation of this reversal candlestick.My recommendation for buying Hexo stock would be to buy shares above $4.18. That's 8 cents through the high of the weekly hammer. This approach gives up a few pennies of profit in return for trying to purchase HEXO on sustainable momentum to avoid the possibility of a weaker buy signal in Hexo stock price that's doomed to fail.Similarly, and to contain risk, I'd place an initial stop at $3.63 and 8 cents beneath the pattern low. This exit looks to evade being an easy target for a bear raid hitting picture perfect stops at $3.70.In exchange for the position risk of 65 cents, I'd take partial profits in between $5.00-$5.15. The targeted area is slightly above the double bottom's July high and may draw in fresh buying interest. But with no guarantees and profits approaching 1.5x the risk, this spot reasonably makes sense off and on the price chart.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post Hereas How to Buy Hexo Stock Now appeared first on InvestorPlace.
Back in June I suggested cannabis company Hexo (NYSE:HEXO), in a sea of noisier names like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB), might be the market's best-kept marijuana-minded secret. Hexo stock has continued its struggles.Source: Shutterstock Its hub-and-spoke business model that leans on big-name partners is a savvy approach to low-cost growth its rivals aren't utilizing.I followed up on that commentary in late July, further fleshing out the notion that Hexo stock requires a long-term mindset. Near-term volatility threatened to shake shareholder confidence and undermine HEXO shares, in the absence of those partnerships.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe underlying thesis still stands. With plans to add more Fortune 500 caliber partners like its relationship with Molson Coors (NYSE:TAP) at the end of its spokes, this young cannabis name is a name worth watching. But, it's still a long-term play.The in the meantime just became very hairy and scary for Hexo stock though, and there's absolutely nothing to prevent matters from getting worse before they get better. Sector-Wide Headwinds PersistMore than once since marijuana mania took hold, after Constellation Brands (NYSE:STZ) made a major investment in Canopy Growth, have I warned investors about two related pitfalls of the cannabis craze as a whole. * 7 Tech Industry Dividend Stocks for Growth and Income One of them is the likely price-cutting commoditization of the plant. The other is investors' impending realization that simply being in the pot business is no guarantee of immediate profits.The former, incredibly enough, hasn't started to happen yet even though the prospect remains on the table.As for the latter, following second quarter's industry-wide results it's quite clear some of these names may never make their way out of the red. Canopy's quarterly sales of recreational pot actually fell sequentially, per the report from June, and Hexo stock took a beating after an unexpected revenue dip for its most recently-ended quarter.It's not the individual stories within the marijuana arena that are of interest here and now though. The movement could shrug off one or two stumbles.Rather, the cannabis craze has become a groupwide matter again, much like it was in early 2018. All of these names are being lumped together because after the past couple rounds of quarterly reports they all seem to be facing the same underlying headwinds. Those headwinds are (1) the realization that building scale is expensive and difficult, and (2) the fact that recreational demand hasn't lived up to the palpable hype from a year ago.And that's a problem for Hexo stock. With every other major marijuana name losing ground after a few-too-many red flag started to wave this year, the falling tide is dragging the Hexo stock price lower with it. Pot Stocks Have a ProblemThe graphic below tells the tale. Over the course of the past twelve months, with the exception of New Age Beverages (NASDAQ:NBEV), every major cannabis stock is in the red. And even then, a major footnote is merited. That is, of all the marijuana names in focus, NBEV stock has fallen the farthest from its peak. It's now down nearly 70% from its September-2018 high.It's not a mere matter of bad luck or an unfair comparison either. These names have been steadily trending lower, as a group and individually, since April. Several are at or near new 52-week lows. Click to EnlargeWhen one name in a group of eight stocks stumbles, there's something wrong with that company. When all eight lose ground for four straight months there's something wrong with the industry.Admittedly, it may be more about perception than reality. It just doesn't matter. If the bulk of investors are convinced none of these names are worth holding onto, then these names are going to struggle. Bad news for one leads to bad results for another, creating a self-fueling selloff. Bottom Line for HEXO StockHexo is still arguably one of the more compelling names in the cannabis business. By putting itself in a support and supply role for major brands that want to plug into the cannabis market, it avoids being forced to make risky investments that may or may not pan out.Hexo also doesn't grant large, controlling stakes of itself to its partners the way rivals have. Case(s) in point: Constellation now controls nearly 40% of Canopy Growth, which was enough to oust CEO Bruce Linton in July.Altria Group (NYSE:MO) now owns 45% of Cronos Group (NASDAQ:CRON), with the option of buying up to 55%. That effectively puts it in charge of Cronos, even though it may not have the same vision as Cronos CEO Michael Gorenstein does. Hexo remains relatively flexible in comparison.But, so what? All pot-based plays are being treated as liabilities now, and Hexo stock is no exception to that trend.As to when it might end is anybody's guess, but the tide's not likely to turn until at least a couple of these names can prove there's sustainable profit growth ahead.I'm not holding my breath.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 * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post Especially Under Current Conditions, Stay Far Away from Hexo Stock appeared first on InvestorPlace.
NEWPORT BEACH, Calif., Aug. 28, 2019 -- Gateway Investor Relations, a 20-year-old leading strategic financial communications and capital markets advisory firm, will host its.
Cannabis stocks have been hurting this month, and Aurora Cannabis (NYSE:ACB) stock is no exception. Shares have been pounded since support gave way in July, leaving many investors wondering what to do with ACB stock. The cannabis space is tough, as volatility has elevated as the overall market falls under pressure.The space is speculative, to be sure. And when market-wide volatility picks up, speculative names are in the crosshairs.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's not just ACB stock that's struggling either. Cronos Group (NASDAQ:CRON), New Age Beverages (NASDAQ:NBEV) and Tilray (NASDAQ:TLRY) have all been besieged. Canopy Growth (NYSE:CGC), a name I and many others considered the "blue chip" in cannabis, has also floundered.So, where does all of this seesawing action leave Aurora Cannabis stock? Valuing Aurora Cannabis StockThere are several attractive elements to the cannabis space. First, worldwide regulation has been easing toward marijuana use, both medically and recreationally. Whether that's in Europe, Australia, Canada or the U.S., we're seeing more open-mindedness to the benefits of cannabis. * 10 Companies Using AI to Grow As acceptance grows, so too does revenue. ACB, TLRY, CGC, CRON and others are experiencing explosive revenue growth. Seeing year-over-year sales double, triple and even quadruple in some cases surely is attractive to long-term investors.Finally, there are mergers and acquisitions. Constellation Brands (NYSE:STZ), Altria (NYSE:MO) and others have plunked down billions of dollars in investments, with more companies on the sidelines waiting to make investments or collaborate. That's surely a catalyst as well.But it's not as if these positive factors have gone unnoticed. It's driven many of these equities to huge valuations relative to their fundamentals. In the case of ACB stock, Aurora Cannabis has a market cap of almost $6 billion.That's despite revenue of just 65.1 million CAD last quarter, a record result. While it's good to see Aurora Cannabis moving in the right direction, it's hard to deny that the valuation is quite high.While we've seen an uptick in cash, we've also seen a steady increase in liabilities. Still though, with current assets and total assets both outweighing their liability counterparts, Aurora Cannabis has some staying power. However, even though a balance sheet may be okay in the present, the fundamentals need to improve it over time, not harm it.With negative operating income and free cash outflow, Aurora Cannabis will weaken over time unless it can plug some of those holes. Trading ACB StockFor now, Aurora Cannabis stock is trying to put in a bottom. Shares made new lows on Monday August 26, before reversing and closing higher on the day. That's good price action for the bulls, but it's only a short-term move.More than a month ago, we said ACB stock was setting up for a midsummer plunge. That was near $7, when support gave way and the descending triangle formation was in full force. After hitting $5.53 this week, shares were off more than 20% from those support levels. Click to EnlargeIn short, the charts have not been doing well. Bulls need a few things to happen before Aurora Cannabis stock starts to look healthier.First, shares need to get above and stay above the 20-day moving average. This metric was a notable support level during ACB's ascent, and it's been a potent sell signal during its fall. You can see where this moving average went from support to resistance, highlighted by the orange arrow on the chart.Above the 20-day moving average brings up investors' second task with ACB stock: clearing downtrend resistance (blue line). Over both these levels brings up the 50-day moving average and possibly prior support at $7.If ACB stock can't start making bullish strides, the bearish momentum is likely to continue. In short, rallies into resistance will likely draw in sellers until ACB can prove otherwise. If shares continue lower, look for channel support to continue buoying the name, and see if $5 brings any sort of reprieve.Until the markets steady themselves, cannabis stocks may have trouble finding sustained rallies.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 * 2 Toxic Pot Stocks You Should Avoid * 10 Companies Using AI to Grow * The 10 Biggest Winners From Second-Quarter Earnings * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Worries Mount as Aurora Cannabis Stock Nears 52-Week Lows appeared first on InvestorPlace.
NEW AGE BEVERAGES CORPORATION (NBEV), the Colorado-based healthy products company, has been invited to present at the 8th Annual Gateway Conference, which is being held September 4-5, 2019 at the Four Seasons Hotel in San Francisco, CA. During the current quarter, New Age completed the acquisition of Brand’s Within Reach, which brought with it the licenses and distribution rights for Nestea, Volvic, Illy RTD Coffee, Evian, and others. At the conference, New Age will provide an update on the integration progress of the acquisition and discuss plans regarding new product expansion in its global markets for the remainder of the year.
One look at the chart of New Age Beverages (NASDAQ:NBEV) stock over the past year, and it's easy to see that this is a highly volatile stock. Over the course of the past year, NBEV stock has moved up or down 5% or more in a single day more times (79) than the S&P 500 has moved up or down 1% or more in a single day (55 times) -- and that's over the past year when the S&P 500 has been considered "extra turbulent".In other words, NBEV stock is very volatile -- volatile enough that regardless of the fundamentals here, this isn't a stock that deserves your lunch money.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith that said, the fundamentals underlying New Age Beverages are promising. In a not-that-unrealistic long term scenario wherein New Age Beverages capitalizes on its current growth initiatives, NBEV stock could be a $15 stock in five years. That represents four-fold upside from today's prices.Thus, NBEV stock is a potential multi-bagger. But as with any potential multi-bagger, there are big risks here -- big enough risks to keep me sidelined for the time being. * 3 Beautiful Breakout Stocks to Buy As such, I think the investment implication with New Age Beverages stock is simple. Don't count it out, but don't count it in. Instead, if you can stomach it, take small bites here and see how the narrative progresses. Else, wait on the sidelines until more clarity arises as to where NBEV stock will head over the next several years. Don't Count New Age Beverages Stock OutAlthough NBEV stock has history of being exceptionally volatile and trades in penny stock territory -- which is usually reserved for stocks on their way to the graveyard -- I don't think investors should count out New Age Beverages just yet.The core growth narrative here is that New Age Beverages is trying to be the world's leading healthy beverage company. Through a series of acquisitions, New Age Beverages has amassed a respectable portfolio of healthy beverages, including Marley, Coco-Libre, Bucha Live Kombucha, Evian water, and Illy coffee.Most of those brands are levered to the secular health awareness trend, which is driving higher sales across the whole beverage industry. It should be no surprise, then, that organic sales at New Age Beverages rose 7% year-over-year last quarter.These secular health awareness trends should persist. So should healthy organic sales growth at New Age Beverages. Adding to the growth trajectory will CBD-infused beverage sales, as New Age is among one of the first non-alcoholic beverage companies to experiment with CBD drinks in the U.S. Healthy organic sales growth plus new CBD revenue should drive high single to low double digit revenue growth over the next few years.Gross margins are moving higher because recent acquisitions have been for higher gross margin products. At the same time, high single to low double digit revenue growth should be enough to drive at least slightly positive operating leverage. In the event that it does, New Age should be able to reach around $0.75 in EPS by fiscal 2025.Based on a consumer discretionary average 20-times forward multiple, that implies a 2024 price target for NBEV stock of $15 -- more than four-fold the current price tag. Don't Count It In, EitherAlthough NBEV stock has multi-bagger potential in the long run, investors shouldn't count on NBEV stock realizing that potential anytime soon, if ever.The reality is that there are major risks which face New Age Beverages. In particular, the company does not have a robust track record of organic sales growth, and assuming that the company's brands continue to gain in popularity may seem like an unnecessarily large leap of faith. Further, New Age Beverages isn't profitable, nor has it ever been as a public company. The pathway to profitability at this point in time similarly lacks visibility because of how high the opex rate is (over 70% year-to-date).Also of note on the risks side of things, CBD beverage upside -- which is why this stock went parabolic back in late 2018 -- is a wild card.In other words, there's reason to believe that -- as opposed to growing sales and margins over the next several years and producing sizable profits at scale -- New Age could potentially lose sales and margins over the next several years, and never produce a profit of any sort.So long as a lack of clarity remains as to which way New Age Beverages will swing, NBEV stock will remain hampered by low long term visibility. * The 10 Best Marijuana Stocks to Buy Now Bottom Line on NBEV StockWhen it comes to NBEV stock, don't count this penny stock out yet, but don't count it in, either. There is a pathway wherein NBEV stock turns into a multi-bagger over the next four to five years. But, that pathway lacks visibility and tangibility at the current moment. Consequently, the best course of investment action here is to monitor the situation, and wait for more long term growth visibility before buying into the stock.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Why New Age Beverages Stock Is High-Risk, High-Reward appeared first on InvestorPlace.
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
The market isn’t always right, but New Age Beverages (NBEV) falling after a quarter the company attempted to play off as strong tells an accurate story. The company's promising large CBD-beverage deals and major distribution opportunities that all failed appropriately trades at multi-month lows below $4. Another 5% dip following Q2 results tells all the story that investors need to know.Q2 ResultsNew Age Beverages spent a lot of time on the Q2 earnings report discussing the results in comparison to the same period last year. The company has closed several acquisitions including the large Morinda deal in the process. The only real relative number is either organic growth or the comparison to forecasts at the time of the deal.For Q2, the beverage company reported revenues of $66.3 million, up 397% from last Q2 and 14% sequentially. The only important metric here is that New Age grew revenues sequentially from the weak Q1 numbers.The company barely generated a positive adjusted EBITDA in Q2 highly questioning the value of the Morinda deal. During Q1, New Age was easily EBITDA positive at $4 million. The end result was another EPS miss that continues a trend of the company not even matching analyst estimates.All in all, the Morinda deal was supposed to bring the company up to revenues of $320 million and positive EBITDA of at least $15 million. The Q2 results don’t appear enough to reach those totals.What Happened To CBD?The big promise of investing in New Age Beverages was to own a company positioned to be early market leader in CBD-infused beverages. The Q2 results have the company selling CBD products in both the U.S. and Hong Kong, but not so much on the beverage side.The company suggests the FDA is allowing thousands of smaller companies to enter the CBD-infused market and delaying public companies like New Age Beverages. So the company positioned for market leadership and an early market advantage isn’t even in the market yet.The CBD delays resemble the Walmart (WMT) and 7-Eleven distribution deals where the company failed to deliver on promises. New Age management now suggests that 7-Eleven is impossible to deal with as franchises don’t follow corporate wishes. All of these major deals failed to materialize as forecast due to management incompetence or desire for being highly promotional on the potential of new products and distribution deals.The company now expects revenues to reach the high $200 million range in 2019, down from the $320 million levels when closing the Morinda deal last year. With only $124 million of revenues in the 1H of the year, an analyst questioned the company on how even a $70 million Q3 would deliver full-year revenues of $290 million.TakeawayThe key investor takeaway is that New Age Beverages has a lot of promises regarding CBD-infused beverages, large distribution deals or even the Morinda business, but the common outcome is always failure. Investors would be wise to avoid this stock and ignore all the undeliverable promises of the management team.The cannabis and CBD market offers numerous companies that are delivering on growth promises. Investors would be far better off investing elsewhere as New Age constantly fails to deliver.We can also see on TipRanks that investor sentiment is red, as individual investors have been, on net, pulling back from NBEV shares over the last 30 days. (To see more, click here)
The beverage company continues to benefit from acquisitions but is looking for solid organic growth in the second half of the year.
The upstart soft-drink seller increased its revenue in the June quarter but said it could do better if China trade problems resolve and the U.S. clarifies CBD rules that are “as murky as the Strait of Hormuz.”
DENVER, COLORADO, Aug. 08, 2019 -- NEW AGE BEVERAGES CORPORATION (NASDAQ: NBEV), the Colorado and Utah-based healthy products company, today announced financial results for the.
New Age Beverages (NBEV) benefits from strong brand portfolio and efforts to expand national distribution in the United States. These and other initiatives should bolster its second-quarter results.
DENVER, COLORADO, Aug. 02, 2019 -- New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based organic and natural products company, today announced that it will hold an.
As an investment, it's been tough being a bull in Hexo (NYSE:HEXO) the past few months. Still, could Hexo stock finally be worth the risk and deserving of room in your portfolio today? For that answer, let's take a look both off and on the price chart to reach a more informed decision.Source: Shutterstock Let's face it, a speculative cannabis market isn't without its very real challenges for Hexo. In large part it's why shares of HEXO have lost 55% of their value with Monday's low in hand and in just four short months. If misery loves company though, Hexo stock isn't alone either.Peers Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) and New Age Beverages (NASDAQ:NBEV) have all been hit hard. Not that these companies are interchangeable. They aren't. But in a crowded and still very young marijuana industry, some business pivoting is also inevitable. So is the very real threat that more than a few of these names will undoubtedly go belly up.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike its peers Hexo has to face the other elephant in the room. Hurting all these companies, near-term there's simply too much supply in the market. Canada of course has trail blazed with its policy of full legalization of cannabis, but adoption elsewhere has been slow. * 7 Stocks to Buy With Over 20% Upside From Current Levels In the U.S. a handful of states have opened their doors for business. Still, more meaningful acceptance, let alone national legalization, is going to take years, if ever at all. And at the end of the day, Hexo stock and its cannabis peers need regulatory approval and additional markets outside of Canada for longer-term survival and ultimately, be able to thrive.With caveats in place, Hexo stock does have at least one solid ace in its pocket. The company is entering the niche edibles and cannabis-infused beverages market with product launches set for later this year. Further, the beverage giant Molson Coors (NYSE:TAP) has Hexo's back.Hexo maintains a strategic partnership with Molson Coors. As much, resources from financial support to Molson's marketing, distribution and operational expertise give Hexo a critical early advantage as it looks to successfully build its brand.It goes without saying the Molson Coors deal is big, but not the end all, be all either. But Hexo stock could be offering today's investors another important ace on the price chart. Maybe. Hexo Stock Weekly ChartDespite the pressure on the cannabis industry the past few months and HEXO's own precipitous corrective move, shares remain in an uptrend. That's a rarity within the group. And with Monday's low, shares have also established what could prove to be an intermediate low into key technical support. Click to EnlargeThe weekly chart for Hexo stock shows shares are in a testing position of its lifetime 62% retracement level. In of itself, the deep challenge is attractive from a contrarian perspective. I'm also upbeat as the price action is occurring around HEXO's past pre-euphoric highs from early 2018 after a prior failure in late 2018 of this lateral support. Lastly, stochastics is oversold and generating a bullish crossover signal.If a higher weekly low pattern in Hexo stock can be confirmed at current levels, it should be of technical interest to investors willing and able to allocate some speculative capital into the cannabis space. Bottom-line though, continuing to use the price chart to manage downside exposure and avoid a position going up in smoke is required for investing in Hexo stock.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Why and How You Should Buy Hexo Stock appeared first on InvestorPlace.
With estimates forecasting the global cannabis market to reach $66.3 billion by 2025, analysts and investors alike are placing bets on which stocks in this emerging industry are best positioned to reap the biggest rewards from this significant opportunity. While the space is subject to regulatory headwinds and is many years from realizing its full potential, some companies have resonated with analysts as potentially lucrative investment opportunities. Here are three stocks with Moderate Buy consensuses that are expected to dominate in the competitive cannabis landscape.Is New Age Beverages Stock a Buy with 200% Upside?New Age Beverages (NBEV) produces and distributes healthy functional beverages that are lauded for being all natural and organic. Adding to their existing line of dietary supplements and ready-to-drink beverages, NBEV is developing a line of CBD-infused beverages. In December, the company announced that it is acquiring Morinda Holdings for a cash-and-stock deal worth $85 million. The deal is highly favorable for the company as it now has access to Morinda’s larger product portfolio and distribution network in 60 countries around the world.Roth Capital analyst David Bain agrees that the acquisition is beneficial as it will allow NBEV to be global in its CBD launch. Bain’s bullish sentiment is demonstrated through a Buy rating and price target of $11 (200% upside!), which is the highest price goal for the stock among analysts (To watch the analyst’s track record, click here).Bain noted, "Checks cite a June +48% month-over-month result for Morinda China. We believe the Morinda China’s June result gives visibility for NBEV’s CY19 $320mm revenue guidance (while also boosting 2Q19 results)."Bain notes that New Age’s 2Q19 gross revenue guidance of ~65mm could prove conservative considering the recent China and Japan Morinda results but feels that maintaining CY19 guidance would serve to bolster NBEV’s current valuation.With promising synergies from the recent acquisition on the horizon, Bain is not alone in his bullish outlook on NBEV stock. TipRanks analysis of 3 analysts shows a Moderate Buy consensus, with two analysts saying Buy and one recommending Hold in the last three months. The average price target among these analysts stands at $8.33, which represents ~125% increase from current levels. (See NBEV's price targets and analyst ratings on TipRanks)Aurora Cannabis Has Plenty of Juice to Rally HigherAurora Cannabis (ACB) is the world’s second largest cannabis company by market cap. It is a licensed producer of marijuana in Canada with sales and operations in 23 international countries. ACB’s production profile allows it to reach an expected annual run rate of over 625,000 kg per year.Cowen analyst Vivien Azer’s belief that Aurora’s cultivation footprint “provide ACB with the necessary infrastructure to weather early storms in adult use while continuing to grow higher-value revenues in the medical market.” That's enough for Azer to rate the stock a Buy with a C$15 price target, which implies nearly 140% upside from current levels. (To watch Azer's track record, click here).Azer points out that in addition to its leadership position in capacity, Aurora’s growing supply will also serve to bolster profitability. Further, through its large-scale production network and near-term operating leverage, ACB distinguishes itself as one of the few Canadian LPs positioned to reach positive EBITDA as soon as 4Q19 at a time when many peer companies in the industry have struggled with profitability.Beyond Aurora’s current operational rigor, many believe that the announcement of a major partnership could be a significant catalyst for Aurora’s stock. Azer expects “ACB to add at least one strategic partner in 2019 (likely brokered by strategic advisor Nelson Peltz) with the company focused on opportunities across a number of consumer and medical verticals.”Despite acknowledging potential obstacles ACB could face including increasingly restrictive regulatory roadblocks and lower than expected consumer demand, Azer is still steadfast in her belief that “ACB should trade at a premium to the peer group given its near term path to profitability in conjunction with strong early stage execution within the nascent Canadian cannabis adult use market.”All in all, given the infrastructure ACB has built to take advantage of the always-changing market, Azer is confident that Aurora is well-positioned to dominate globally. Wall Street is almost evenly split between the bulls and those choosing to play it safe. Based on 9 analysts polled in the last 3 months, 5 rate ACB stock a Buy, while 4 maintain a Hold. Notably, the 12-month average price target stands at $9.98, marking a nearly 60% in return potential for the stock. (See ACB's price targets and analyst ratings on TipRanks)This Analyst Likes HEXO Stock… Should You?In July, HEXO Corp. (HEXO) uplisted to the NYSE with the clear intent of attracting long-term investors. Looking back, HEXO received a lot of buzz after announcing its joint venture with Molson Coors Brewing that will focus on cannabis-infused beverages. Beyond this value-add partnership––which opens the company to what could become a $1.4 billion canna-beverages market by 2023––HEXO is an innovation-forward organization with an impressive growing pipeline of differentiated products.Desjardins analyst John Chu looks at HEXO’s ramped up production and 4Q FY19 and FY20 net revenue guidance as promising potential upside for the stock. With a bullish outlook for the company, the analyst rates HEXO a Buy rating with a C$14 price target, which implies nearly 144% upside from current levels. (To watch Chu's track record, click here).Chu believes that HEXO’s infrastructure, which prepares it for edibles legalization, positions the company to have a major first-mover advantage over most of its peers and capture a fair share of the Canadian market. The analyst notes that “signs point to industry sales improving on the back of increased distribution in Québec, Ontario and Alberta, which should benefit HEXO given its production ramp-up” of its new greenhouse and Belleville facility. With continued expansion projects, the company should be able to overcome the previous bottleneck and accommodate higher packaging capacity.Even though HEXO is losing money more slowly than its larger peers, near-term margins could face headwinds as the company expands its capacity. On the back of a 20,000kg supply contract with Québec, however, the analyst has more confidence in HEXO’s sales outlook than other companies in the industry. In fact, Chu shares that “there are fewer companies focused on advanced products (eg edibles) and/or that a limited number of those companies will have products ready when legalization starts.” Beyond its ambitious plans for Canadian legalization and to be a top 3 player in Canada, HEXO is positioning itself to be in eight U.S. states by the end of 2020 and plans to have a few Fortune 500 partners by then.With HEXO primed to reap the rewards of its hard work, Chu is not alone in his support of the company, as TipRanks analytics showcase HEXO as a Moderate Buy. Out of 6 analysts polled in the last 3 months, 3 are bullish on the stock, 2 remain sidelined, while 1 is bearish. Worthy of note, the 12-month average price target stands at C$10.02, which implies nearly 75% upside from current levels. (See HEXO's price targets and analyst ratings on TipRanks)
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.
BWR owns key licensing and distribution rights in the United States 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. Consideration for the transaction was $2.5 million which was utilized to eliminate 100% of BWR’s debt, plus a $500,000 payment to the sellers. We will also issue up to 700,000 restricted shares of New Age common stock which may be reduced following a final working capital covenant calculation.
Every investor in New Age Beverages Corporation (NASDAQ:NBEV) should be aware of the most powerful shareholder groups...