|Bid||0.0000 x 4000|
|Ask||0.0000 x 3000|
|Day's Range||2.6100 - 2.7200|
|52 Week Range||2.5700 - 7.7900|
|Beta (3Y Monthly)||1.73|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.75|
According to the Wall Street Journal a hedge fund that was an early investor in Juul recently wrote down its stake in the company to value Juul at just $24 billion dollars, a 35% drop from the $38 billion dollar valuation the company boasted just about a year ago when tobacco giant Altria paid up for a minority stake in the vaping giant. Yahoo Finance's Zack Guzman and Emily McCormick discuss with Barron's Senior Writer Alexandra Scaggs.
If misery loves company, then Aurora Cannabis (NYSE:ACB) shareholders are far from alone. While marijuana stocks like ACB were soaring earlier in the year, several marijuana-related headwinds and dulling hype have since sent many of these stocks downward. But if new investors want to brave the risk and allow ACB stock to grow in their portfolio, a risk-adjusted long position in shares needs to be properly cultivated first.Source: Shutterstock From the largest producer Canopy Growth (NYSE:CGC) to a smaller and promising niche player like New Age Beverages (NASDAQ:NBEV), a risk-off attitude toward this emerging-but-still-very-dicey market has been pervasive.And Aurora stock has proven no exception to this pain.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's also true that the loss in ACB stock's value hasn't been without justifiable cause either. Last month's worse-than-forecast quarterly results failed to deliver anything other than more supportive ammo for ACB bears. That's because it's hard for Aurora to be a winner right now. Given the difficult regulatory environment for the cannabis market -- one that also increasingly faces oversupply problems -- rising costs and lower margins, it's no wonder Aurora hasn't been able to stand up straight lately.Adding more pressure to Aurora Cannabis stock is the fact that one of its peers, Hexo (NYSE:HEXO), recently announced an revenue warning and guidance retraction and continued push-back toward cannabis due to vaping fatalities. All of these problems could reflect future struggles for ACB's business as well.And, looking at the stock chart below, we can clearly see the toll this decisively bearish sentiment has taken on Aurora stock. ACB Stock Monthly Chart But before we jump on the bearish train, it's important to take a closer look at the bigger picture in Aurora Cannabis.Although I've said it before, it's still very relevant to ACB stock and prospective ACB investors: Most of the market's greatest and most legendary investments, from Coca-Cola (NYSE:KO) to Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN), have had their own periods of overenthusiastic sentiment eventually getting the best of investors. * 10 Stocks to Sell Before December's Meltdown To that end, Aurora stock can't just be written off. But buying shares today isn't advised.Right now, ACB stock is controlled by bearish operators. Following September's post-earnings breakdown of the 62% level and trendline support, shares have cratered by roughly 35%. Most recently, the pressure has forced a combined failure of 2018's bottom and 76% support. And as bad as that is, it could get a good deal worse.There's little to suggest Aurora Cannabis stock price's bearish trend can't continue toward the 2017 low of $1.38. This marks the Fibonacci cycle low detailed on the monthly chart above. It's an important level to consider. Specifically, it's the bottom for shares following Wall Street's enthusiastic introduction to ACB stock in late 2016.Ultimately, there's no reason to start cherry picking for a bottom in ACB. Even an accumulation strategy could prove very painful if shares continue to trend lower toward a full 100% retracement.It's simply too early to know what will happen to Aurora Cannabis stock here.Therefore, my recommendation is to allow a confirmed candlestick reversal pattern and bullish stochastics crossover to be in place on the monthly chart before considering a purchase of ACB stock. In my view, this approach won't buy the absolute bottom.More important, the approach stands a much stronger chance of cultivating longer-term profits if history repeats itself or simply rhymes in a good way.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 Stocks to Sell Before December's Meltdown * 7 Software Stocks to Buy for Growth * 3 Large-Cap Stocks to Buy After Earnings The post Aurora Cannabis Stock Is Still Not Worth a Buy appeared first on InvestorPlace.
Probably no other stock reacts to positive headlines more than New Age Beverages (NBEV - price target), yet the stock trades at yearly low. The company remains highly promotional of future opportunities without necessarily delivering on those plans. The latest example again hurt retail investors that over reacted to the headlines.Nestea TweetOn October 16, New Age Beverages tweeted that “big news” was on the way with Nestea. The market naturally jumped on the concept that the news was somehow related to a new CBD drink with Nestea owned by Coca-Cola.While a CBD deal with Coke would be a potential game changer, investors should carefully trade any headlines not backed by actual results and performance. The company followed the next day with a tweet that Nestea Instant Sweet Iced Tea Mix was back.The stock soared nearly $1 or 31% to $3.59 on the initial tweet. Clearly, an ice tea mix was not what any investor would consider as “big news.” The stock closed on October 17 at $2.82 for a minimal gain from this headline grabbing tweet.History Of Missing TargetsAn investor reaching for major news from New Age Beverages was burned yet again. The stock reached nearly $8 in February on CBD hype despite the company never living up to expectations.The stock is now trading slightly above the 52-week low of $2.57 so investors should consider all of the other products promised as game changes that haven’t helped the business or the stock. One only needs to go back to the recent announcement of CBD approval in Japan or the previous Walmart (WMT) deal all burned investors falling for the headline hype while the actual results of the business missed targets.On September 24, New Age announced the Japanese Narcotics Control Division and the Japanese Ministry of Health had approved the launch of CBD products in Japan. The stock jumped to $3.39 on the news before dropping to the 52-week low within about a week on October 2.Back on April 8, the stock surged on news of an expanded distribution deal with Walmart. The large retailer agreed to distribute their Marley brand causing the stock to soar to $6.69. Within a month, New Age was trading back into the $4s before collapsing further into the $2s.During this process, the company has a long history of missing estimates. The Morinda deal was promoted as creating a business with substantial EBITDA profits, but analysts now forecast New Age losing money in both 2019 and 2020.The original 2019 revenue estimate surrounding the merger was $320 million. Now, despite the expanded distribution deal with Walmart and other retailers, analysts estimate revenues for the year down at only $274 million.TakeawayThe key investor takeaway is that New Age Beverages has a history of announcing major deals and big news that doesn’t always come to fruition. The bottom line is that investors should avoid this stock on any hype, especially around CBD beverages, until the company more consistently beats financial targets and more accurately reflects actual big news within press releases and social media.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.Disclosure: No position
New Age Beverages Corporation (NBEV), the Colorado-based organic and natural products company, today announced the expansion of their partnership with Nestle, including the broadening of their license agreement on NESTEA to now include all products under the brand, including NESTEA Powdered Tea products in the United States. As a result, New Age is launching NESTEA Powders immediately in its e-commerce system, targeting its current database of more than 1,000,000 consumers, and with major retailers through the United States. NESTEA Powdered Tea has historically generated sales at retail of more than $30 million.
Investors need to pay close attention to New Age Beverages (NBEV) stock based on the movements in the options market lately.
Today, New Age Beverages Corporation (NBEV) announced that it would launch its CBD (cannabidiol) based products. Share prices jumped by 14.96% to $3.20.
The Canadian LP announced that it has secured an agreement through its wholly owned subsidiary PureSinse Inc. with KMT-Hansa Corp., a Chinese hemp production company registered in Anguilla. “We are extremely excited to be the first Canadian LP to partner with a Chinese group seeking to develop a project of this scale in China. This strategic relationship gives us access to KMT’s resources and connections in China.
New Age Beverages Corporation (NBEV), the Colorado-based organic and natural products company, announced the approval by the Japanese Narcotics Control Division and the Japanese Ministry of Health for New Age’s CBD products in Japan and the company’s subsequent launch into the market effective immediately. New Age is the first major company to gain approval by the Japanese Ministry of Health and Narcotics Control Division to sell its portfolio of CBD products in the country. New Age created a separate, wholly-owned subsidiary in 2018 under which it commercializes all of its CBD-infused products, including its line of Marley CBD-Infused Beverages and its portfolio of ‘Nhanced creams, oils, and roll-ons, and the forthcoming Noni+CBD product.
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that...
Although not a pure cannabis play, New Age Beverages (NASDAQ:NBEV) has had to deal with the same volatility. Since January's opening price, NBEV stock has dropped a staggering 37%. However, the downfall isn't due to a lack of trying.Source: Shutterstock Early this year, NBEV announced an addition to its Marley-branded beverages called Marley+CBD. Infused with cannabidiol or CBD, the cannabis compound brought a therapeutic element to the artisanal beverage series. Plus, the positive notoriety associated with CBD gave New Age Beverages stock a nice lift following the announcement.This past summer, New Age CEO Brent Willis showcased the company's Nhanced CBD line of oils, creams and lotions. Launched in Hong Kong, NBEV intends to expand into Japan and China next.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately, NBEV stock peaked in early February. From then on, save for some smatterings of good news, it's been all downhill for shares.That said, New Age Beverages stock appears to have found a bottom around the psychologically significant $3 level. Granted, most conservative investors should ignore this technical phenomenon. But for the speculators among you, NBEV might be an interesting play.In a strange way, I say this because of the current vaping crisis. Federal health agencies are investigating a recent spike of acute lung illnesses which they believe are associated with vaping. However, evidence suggests that illicitly sourced THC-infused vaping liquids are the real culprit. * 10 Battered Tech Stocks to Buy Now In the context of companies like Cronos Group (NASDAQ:CRON), the vaping crisis is a distraction. For the time being, it's probably kept NBEV stock in check, too. But in the long run, this issue may benefit New Age Beverages. Here's why: A Platform Crisis Will Give Way to CuriosityOne of the challenges of cannabis-based companies is overcoming the stigma associated with the plant. Typically, the term "cannabis" conjures up images of stoners smoking, or in this case vaping a joint.As my InvestorPlace colleague Will Ashworth noted, vaping or smoking products will always be a tough sell, irrespective of alleged health benefits. But products like beverages, oils and creams? That is a much more palatable situation, one that clearly favors New Age Beverages stock.Recently, I had a chance to sit down with corporate representatives John Weston and Paul Dibrito of cbdMD (NYSEAMERICAN:YCBD). During our conversation, we discussed the wide-ranging product diversity of the CBD and hemp space. For instance, cbdMD features ample ways to enjoy hemp-based therapies beyond vaping. They also have a pet product division called Paw CBD.What does this have to do with NBEV stock and the vaping crisis? No matter what's going on right now, an increasing number of people are interested in CBD for therapeutic use. Sure, the vaping platform might take a hit (no pun intended) from the present crisis. But the core substance itself has substantial support.Therefore, it's much easier to evangelize the benefits of hemp-based products to your family and friends when using socially appropriate platforms. You might not be able to roll a fatty for grandma, no matter how much she complains of pain. But a capsule or a refreshing beverage? That's much easier to swallow (pun intended).Plus, not everyone is healthy enough to smoke or vape. For instance, more than 25 million Americans have asthma. Vaping might not be the best choice for them. But a CBD-infused beverage, as far as I'm aware, is consumable by nearly everyone. NBEV Stock and Long-Term AmbitionsInterestingly, NBEV CEO Willis was formerly a Coca-Cola (NYSE:KO) and Anheuser Busch Inbev (NYSE:BUD) executive. As you might imagine, he's now a strong advocate of legal cannabis.But Willis' push to drive into Asia strikes me as extremely ambitious. When he mentioned Japan, I rolled my eyes. This is the country that arrested and deported former Beatle Paul McCartney. * 7 Momentum Stocks to Buy On the Dip Moreover, when Canada legalized recreational marijuana, the Japanese government issued a stern warning to its citizens living abroad: don't touch the stuff or risk severe penalties.In my opinion, this was an empty threat. However, it does demonstrate Japanese society's highly conservative viewpoint toward the cannabis plant.Naturally, this is an uphill battle for New Age Beverages and NBEV stock. At the same time, if you're going to break into Asia, doing so with CBD-infused beverages probably gives you the best chance of success.But as I said earlier, that sentiment should apply to almost anyone. New Age Beverages stock is incredibly risky. Due to its palatable platform, though, it might have an outside chance of delivering the goods.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Why the Vaping Crisis Might Benefit CBD-infused New Age Beverages Stock appeared first on InvestorPlace.
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.