4.5400 +0.04 (0.89%)
After hours: 7:58PM EDT
|Bid||4.5000 x 900|
|Ask||4.5300 x 4000|
|Day's Range||4.4500 - 4.6610|
|52 Week Range||1.3000 - 9.9900|
|Beta (3Y Monthly)||2.12|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||9.00|
Yahoo Finance's Dan Roberts sat down with Lamar Odom to discuss why pro athletes are so drawn to CBD products right now.
DENVER, CO / ACCESSWIRE / June 20, 2019 / NEW AGE BEVERAGES CORPORATION (NASDAQ: NBEV), the Colorado and Utah-based organic and natural beverage company intending to become the world's leading healthy beverages and lifestyles company, today expanded its Marley brand licensing agreements with companies owned by the family of Bob Marley and Docklight Brands, Inc., to include expansion to new global markets and the addition of new product types, including cannabidiol (CBD) infused shots.
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.
DENVER, CO / ACCESSWIRE / June 18, 2019 / NEW AGE BEVERAGES CORPORATION (NBEV), the Colorado and Utah-based organic and natural products company intending to become the world's leading healthy products company, today announced the launch of their CBD portfolio into Hong Kong, its first major international expansion. New Age launches its first international country with the launch of the 'NHANCED CBD into Hong Kong, China. Plans to launch in an additional 58 countries in Q3 and Q4 as part of its drive to lead in CBD products worldwide.
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 email@example.com 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.
DENVER, CO / ACCESSWIRE / June 13, 2019 / NEW AGE BEVERAGES CORPORATION (NBEV), the Colorado and Utah-based organic and natural products company intending to become the world's leading healthy products and lifestyles company, today announced that it has been invited to participate in and present at the 19th Annual Oppenheimer Consumer Growth and E-Commerce Conference. Brent David Willis, Chief Executive Officer and Greg Gould, Chief Financial Officer of New Age will be giving the presentation, discussing major strategic initiatives and conducting one on one meetings with institutional investors. The New Age Beverages Corporation presentation will be broadcast live for all investors to participate with the support of Veracast.
NEW YORK, June 12, 2019 -- Wall Street Reporter, the trusted name in financial news since 1843, has recently published interviews with CEO’s of trending stocks in the CBD and.
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: * Will Qualcomm (QCOM) Stock Win Again? Canaccord Remains Bullish * CannTrust Holdings (CTST): Even With Entry Into U.S. Market, Investors Must Remain Patient * Deutsche Bank Remains Bullish on UBER and Facebook Stocks * Facebook's (FB) Libra Could Be the Next Big Thing
Monday blues is an understatement for New Age Beverages (NASDAQ:NBEV). The company announced that it would acquire food-and-beverage outfit Brands Within Reach, owner of Nestea, Evian and other labels. But with no details on the purchasing structure or even the ultimate price, the markets quickly upended NBEV stock.It's just as possible, however, that the setback was going to take shape anyway. In this scenario, traders were simply waiting for the right excuse to make it happen.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRegardless of the true reason behind Monday's selloff, the move has very likely done some technical damage to NBEV stock. Eventually, this impairment will lead to more downside. Perhaps worse, the cannabis backstory that kept so many overvalued names moving higher appears to have run its full course.Now, this narrative won't be useful again as a bullish talking point. Traders Never BelievedThere's no denying it: New Age Beverages stock rode the cannabis craze. In September, management announced that it would launch a CBD lineup of beverages in the foreseeable future. * 7 Bank Stocks to Leave in the Vault This decision followed a well-worn pathway. For instance, the planned joint venture between Constellation Brands (NYSE:STZ) and Canopy Growth (NYSE:CGC), and the partnership between Hexo (NYSEAMERICAN:HEXO) and Molson Coors (NYSE:TAP) forged similar synergies.However, New Age Beverages arguably beat them all to the punch. The unveiling of its Marley (as in Bob Marley) brand during the fall of last year was a massive catalyst. It pushed NBEV stock from $1.53 to a peak of $9.99 in the span of just five trading days.A huge swath of traders, however, never really believed that surge was meant to last.As of the latest look, more than 30% of outstanding shares of NBEV stock (and more than 32% of the float) were held as short positions. These are risky bets that the equity will move lower rather than higher. For perspective, a typical short ratio for a less-hyped ticker might be on the order of (very) low single digits. Even riskier names like Hexo and Canopy Growth are only sporting short interest of 5% and 8%, respectively, right now.Such a degree of doubt can have one of two polar-opposite outcomes. On one hand, an "upside panic" could force short sellers to buy NBEV stock to close out their bearish position. On the other, all those short sellers could be right, and shares crumble.Given the shape of New Age Beverages stock for the past several weeks followed with Monday's move lower, it's difficult to say the bears and doubters didn't make the right call. But their party is far from over considering the technical damage done on Monday. Charting New Age Beverages StockMany securities have survived worse than Monday's 6% setback. But in this case, even the low-volume move lower portends more problems. Click to Enlarge Chief among the red flags is the way the tumble carried NBEV stock below the lower edge of a converging wedge pattern that had been forming since September's peak. A close second concern is the fact that the selloff also dragged New Age Beverages stock below a recently developed technical floor around $5.04 (yellow) as well as under its 200-day moving average line (white).Some bulls are already pushing back, but not enough of them. As long as they're unable to push shares back above $5.04, the bears remain in control. They're also well-positioned to take another, more damaging swipe.As for the profitable short sellers that haven't bailed out, they're not likely to do so now. The risky phase of their trade is now in the rear-view mirror. Their next task is pinpointing where the next most likely bottom is now that the previous most-likely floor has been broken as support. Looking Ahead for NBEV StockEventually, all of those short sellers will have to close out their positions by buying NBEV stock back. But anyone anticipating a short-squeeze rally taking shape in the near future is betting on the less likely outcome.With a lack of volume following the stumble, a dead-cat bounce doesn't appear to be in the cards. And with the purchase of an entity that's outside of the cannabis realm -- suggesting there are fewer cannabis-related acquisition options -- the bullish case for NBEV stock further deteriorates. That's because marijuana was the only thing really propping this name up. Even then though, the marijuana narratives weren't doing a great job.Monday's action is likely to be the nail in that coffin, keeping shares subdued for the foreseeable future.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) * 10 Heavily Shorted Stocks to Sell -- Because the Bears Are Right * 7 Bank Stocks to Leave in the Vault * 7 Stocks for You to Profit From (Legal) Insider Trading Compare Brokers The post Even Under $5, New Age Beverages Stock May Not Be Done Falling appeared first on InvestorPlace.
New Age Beverages is the parent company behind multiple brands including Tahitian Noni, TeMana, Búcha Live Kombucha. As part of the acquisition, New Age will gain brand licensing and distribution rights to multiple healthy brands, including Nestea, Volvic, and Illy Ready to Drink Coffee. New Age said the acquisition will help widen the gap between rival beverage companies as it could become the "preeminent one-stop-shop provider" of healthy beverages.
DENVER, CO / ACCESSWIRE / June 3, 2019 / NEW AGE BEVERAGES CORPORATION (NASDAQ: NBEV) , the Colorado and Utah-based organic and natural beverages company intending to become the world's leading healthy ...
With a $1.6 billion market cap, Aphria (NYSE:APHA) does not get the type of coverage that many cannabis stocks get. But just because a company isn't the largest doesn't mean it should be discarded. Is this the case for Aphria stock?Source: Shutterstock It could be, but with such a young industry at hand, there are numerous risks. As a result, many investors feel more comfortable in some of the more well-known names.You know, stocks like Canopy Growth (NYSE:CGC) or Aurora Cannabis (NYSE:ACB). Cronos Group (NASDAQ:CRON) and New Age Beverages (NASDAQ:NBEV).InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome of these companies, CGC in this case, sport market caps in excess of $15 billion. Others, like NBEV, have garnered attention among retail investors despite having a market cap of just $400 million. * 7 Utility Stocks to Trust for Retirement Multi-billion dollar investments along with collaborations and discussions with prominent and well-known companies have helped these names rise to the top of the cannabis industry.Will Aphria stock do the same? A Closer Look at Aphria StockLast month, Aphria missed on earnings and revenue expectations. However, revenue of $55 million grew more than 570% year-over-year. For a $1.5 billion company in this space, that's pretty good, especially considering its growth rate.Of the all the stocks above -- CGC, ACB, NBEV, CRON -- and including Tilray (NASDAQ:TLRY), Aphria stock had the third highest revenue figure for the quarter. Its growth rate exceeded its peers too.These companies aren't known for profitability, but for APHA stock, it was a rarity it held over many of its peers. That is, until last quarter where it reported a net loss of roughly $50 million. Granted it came with a non-cash impairment charge and there were some supply issues in the quarter as well. But still, this caught a number of investors off-guard, as estimates were looking for a loss of 4 cents per share in the quarter, not 16 cents per share.Later in April, Aphria completed a $300 million convertible debt investment round. This gave a boost to the company's liquidity and should fuel future growth.Speaking of the balance sheet, the move was likely necessary for Aphria to keep up with its peers. Cash had fallen 60% from $273 million at the end of fiscal Q1 in August to $107.50 million at the end of fiscal Q3 in February.Not that all of that cash was going to waste necessarily -- total assets increased from $1.625 billion to $2.05 billion in the same span -- but it did create a pinch in liquidity. That's underscored by Aphria's current assets falling more than 26% from $418 million to just $308.5 million in six months. Total debt stood at $62 million before the convertible debt offering, while current assets were almost double Aphria's current liabilities. Trading Aphria Stock Price Click to EnlargeSo where does that leave us?Aphria quietly has a nice operation going as far as the cannabis industry is concerned. Will it be an eventual investment or takeover target by larger players? It could be, but investors need to remember the space they're playing in. The cannabis industry is still speculative, and in particular, so is APHA stock. Why do you think we've seen shares go from $3.75 to $11 and back to $6.50 all since December?According to Jefferies, the analysts are optimistic. On Friday they slapped a $15 (CAD) price target on the stock, saying there's a "big disconnect between valuation and strategic positioning" and that we should see a "significant re-rating in shares." That's up 74% from Thursday's close.That upgrade is kickstarting Aphria into gear. It's a good thing to, because Aphria stock was flirting with a big breakdown below this $6.60 level. Below and shares were surely heading lower. My downside targets would be (and still are if $6.60 fails as support) $6 and the 200-week moving average.We need to see Aphria push through $7.50 and reclaim its 10-week moving average. If these levels turn to support and downtrend resistance (blue line) doesn't weigh on APHA, a return to $10 could be the works.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 Marijuana Stocks With Critical Levels to Watch * 7 Utility Stocks to Trust for Retirement * 5 Large-Cap Stocks Getting Crushed in the Trade War Compare Brokers The post Aphria Stock Very Well May Have 74% Upside Potential appeared first on InvestorPlace.
Tilray (NASDAQ:TLRY) stock has been one of the few popular cannabis stocks to struggle this year. Tilray stock was thrust into the spotlight when the shares went from $22.50 in August to a 52-week high of $300 in September. Yeah, that'll get some attention!But just because TLRY stock price once reached $300 does not mean that, at $44 now, TLRY stock is a six-bagger waiting to happen. Of all the leading cannabis stocks to choose from, Tilray stock is the one I like the least. * 5 Safe Stocks to Buy This Summer Over the last three months and the last six months, it's the worst performer among a group of many marijuana stocks, including Tilray, Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), New Age Beverages (NASDAQ:NBEV), Cronos Group (NASDAQ:CRON) and even the Alternative Harvest ETF (NYSEARCA:MJ).InvestorPlace - Stock Market News, Stock Advice & Trading TipsAre investors missing something important about Tilray stock, though? Why is it underperforming in the manner that it is?When it comes to cannabis stocks, other names seem more attractive. Many consider the most "blue chip" of the bunch to be CGC, which received a multi-billion dollar investment from Constellation Brands (NYSE:STZ). Similarly, Aurora is on the cusp of a potential breakout. After looking at TLRY, though, I believe it doesn't have the good fundamentals of a CGC and its charts lack any bullish momentum. Assessing the Valuation of Tilray StockSome parts of Tilray's income statement look good. For instance, analysts, on average, expect its revenue to surge 320% this year to $181 million. They forecast another surge in 2020, too, with their estimates, on average, calling for growth in excess of 100% to $360 million. To go from $43 million in sales in 2018 to $360 million in 2020 is no small feat. It doesn't matter if we're talking about tech companies or cannabis makers; that's incredible growth.Because of that growth, you can see why big businesses are so eager to get involved in cannabis. These players range from tobacco conglomerates to wine, beer and spirits companies. And many retail investors, of course, have been drawn to cannabis stocks.If TLRY can generate $350+ million in sales in fiscal 2020 and its operations break even, the owners of TLRY stock may see a payday. As of now, analysts' consensus estimates call for a loss of 67 cents per share this year, but a 2 cent per share profit in 2020.On the balance sheet, Tilray has $325.4 million in cash and short-term investments. That's down quarter-over-quarter and it will cause some to wonder whether TLRY can become sustainably cash-flow positive and whether it will have to raise or borrow more money. After all, many cannabis players are busy snapping up smaller companies right now. The company took on, ironically, $420.3 million in debt last quarter. That grew to $422.8 million last quarter, while its "other liabilities" increased to $92.7 million.These are not absurd levels of debt, considering that the market cap of Tilray stock is $4.5 billion. But what happens if TLRY stock price decreases? More importantly, will it? Let's look at the charts of Tilray stock. Trading TLRY StockWhen I look at the chart of TLRY stock, its massive downtrend isn't hard to spot. TLRY has made a few breakout attempts, but for the most part, it has continued to drop since its feverish rally in September. I recommended TLRY stock during its quick rally from $70 to $100 in January, but more or less, I have not been optimistic on Tilray stock since then.My sentiment towards TLRY isn't changing now. Before that can happen, this downtrend will have to end. Specifically, Tilray continues to make a series of lower lows and lower highs. Until it can start putting in higher lows and making higher highs, as well as turning its key moving averages into support instead of resistance, Tilray stock will not be attractive.It's encouraging to finally see Tilray fill the August gap that helped fuel the stock's 1,200% run. While maybe that will be enough to get momentum traders to flip the trend, I'm not betting on TLRY stock until I actually see the bulls regain momentum.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) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Why Investors Shouldn't Buy Tilray Stock Right Now appeared first on InvestorPlace.
[Editor's Note: This article was updated to correct the price-to-sales ratio.]Usually I don't like to invest in small-cap companies but New Age Beverages Corporation (NASDAQ:NBEV) is interesting to trade as a speculative bet for the next few months or maybe years.NBEV is a beverage provider, so I consider it as part of the consumer staples group, which includes great companies like Proctor and Gamble (NYSE:PG), Coke (NYSE:KO) and Pepsi (NASDAQ:PEP).InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlthough it's in the same group as Coke and Pepsi, I do consider NBEV an alternative beverage provider. It's perfectly set up to pursue the cannabis opportunities, specifically the potables.The popularity of cannabis based or infused products has skyrocketed of late and the possibilities are endless. Evidence of this is the popularity of pot stocks like Canopy Growth (NYSE:CGC), Cronos (NASDAQ:CRON) and Tilray (NASDAQ:TLRY). These are intrepid companies trying to establish a new world of opportunities. So this can be a blank canvas for companies like NBEV and and I bet that they will partake in it. Looking at Marijuana Stocks and NBEV StockThe cannabis craze isn't just marijuana stocks -- it now includes CBD products and services. From what I hear, people call it the cure for just about every ailment on the planet. Although there is sarcasm here, I am reporting what I hear even from my friends and family. Everyone who uses it swears it did the trick and that's all that matters.Last year NBEV announced that they will serve potables infused with CBD. So they too will be on the band wagon. This is a trend that is not short term fad. The passion for cannabis from its fans is rare even stronger than Bitcoin. So the movement has legs and evidence is that the major mega cap companies are all rumored to be looking into this too. * 5 Safe Stocks to Buy This Summer On its own, New Age Beverages stock is not cheap. This is a company that loses money and sells at 5x sales. So clearly Wall Street gives it a lot of leeway for now. They just reported earnings and even though they missed expectations they grew sales 400%. But this stock draws enough shorting interest that I bet it could sport a short squeeze sometime this year.NBEV stock is now far from its high but still is popular among investors. It is still up 212% in a year while the S&P 500 is barely green. A fairer comparison is to the Consumer Staples Select Sector SPDR Fund (NYSEARCA:XLP) which is only up 15% for the same period.There is a good chance that NBEV stock entices shorts to bet against extreme moves up or down. So it's a matter of time before it catches fire.Today's thesis is that the overall market weakness we are getting here is an opportunity to bet long on NBEV stock to capture such spike. Once this wave of negative sentiment reverses investors will buy almost every stock up with vigor. But for the controversial stocks like this one they tend to buy them faster.Regardless of the magnitude, the bulls could cause it to breakout above $5.65 per share and that would be a trigger to target $6.70 where it last failed in April. There will be resistance around $6.1 along the way. Above the April fail would bring the sky as the limit.What also makes this possible is that for the last few months, New Age Beverage stock has established a zone of support just below current price. So the bulls have a strong platform from which to mount their efforts.This is not the same as saying that I like the fundamentals; I am agnostic on that front. I consider this a highly speculative and almost binary bet for profit. Since there is less science than hopium, it is important to properly size the gamble. And this is a gamble -- don't bet the farm, choose an amount that won't break your heart or your piggy bank.In addition to the intrinsic risks from the stock itself, I have to contend with the general market malaise from the tariff wars. It seems that the headlines are going to linger for at least another month.Scared markets don't usually buy frothy stocks like New Age. But when investors come to terms with the China risks, then they will buy the riskiest stocks the fastest. In other words, momentum stocks move faster in both directions, so I expect fireworks in NBEV stock soon after the markets stabilize from this tizzy.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post New Age Beverages Stock Could Surge to $6.70 appeared first on InvestorPlace.
New Age Beverages Corporation's (NASDAQ:NBEV): New Age Beverages Corporation, a healthy functional beverage company...