|Bid||3.4100 x 21500|
|Ask||3.4500 x 2900|
|Day's Range||3.2700 - 3.4700|
|52 Week Range||1.3000 - 9.9900|
|Beta (3Y Monthly)||1.70|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.75|
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
The market isn’t always right, but New Age Beverages (NBEV) falling after a quarter the company attempted to play off as strong tells an accurate story. The company's promising large CBD-beverage deals and major distribution opportunities that all failed appropriately trades at multi-month lows below $4. Another 5% dip following Q2 results tells all the story that investors need to know.Q2 ResultsNew Age Beverages spent a lot of time on the Q2 earnings report discussing the results in comparison to the same period last year. The company has closed several acquisitions including the large Morinda deal in the process. The only real relative number is either organic growth or the comparison to forecasts at the time of the deal.For Q2, the beverage company reported revenues of $66.3 million, up 397% from last Q2 and 14% sequentially. The only important metric here is that New Age grew revenues sequentially from the weak Q1 numbers.The company barely generated a positive adjusted EBITDA in Q2 highly questioning the value of the Morinda deal. During Q1, New Age was easily EBITDA positive at $4 million. The end result was another EPS miss that continues a trend of the company not even matching analyst estimates.All in all, the Morinda deal was supposed to bring the company up to revenues of $320 million and positive EBITDA of at least $15 million. The Q2 results don’t appear enough to reach those totals.What Happened To CBD?The big promise of investing in New Age Beverages was to own a company positioned to be early market leader in CBD-infused beverages. The Q2 results have the company selling CBD products in both the U.S. and Hong Kong, but not so much on the beverage side.The company suggests the FDA is allowing thousands of smaller companies to enter the CBD-infused market and delaying public companies like New Age Beverages. So the company positioned for market leadership and an early market advantage isn’t even in the market yet.The CBD delays resemble the Walmart (WMT) and 7-Eleven distribution deals where the company failed to deliver on promises. New Age management now suggests that 7-Eleven is impossible to deal with as franchises don’t follow corporate wishes. All of these major deals failed to materialize as forecast due to management incompetence or desire for being highly promotional on the potential of new products and distribution deals.The company now expects revenues to reach the high $200 million range in 2019, down from the $320 million levels when closing the Morinda deal last year. With only $124 million of revenues in the 1H of the year, an analyst questioned the company on how even a $70 million Q3 would deliver full-year revenues of $290 million.TakeawayThe key investor takeaway is that New Age Beverages has a lot of promises regarding CBD-infused beverages, large distribution deals or even the Morinda business, but the common outcome is always failure. Investors would be wise to avoid this stock and ignore all the undeliverable promises of the management team.The cannabis and CBD market offers numerous companies that are delivering on growth promises. Investors would be far better off investing elsewhere as New Age constantly fails to deliver.We can also see on TipRanks that investor sentiment is red, as individual investors have been, on net, pulling back from NBEV shares over the last 30 days. (To see more, click here)
The beverage company continues to benefit from acquisitions but is looking for solid organic growth in the second half of the year.
The upstart soft-drink seller increased its revenue in the June quarter but said it could do better if China trade problems resolve and the U.S. clarifies CBD rules that are “as murky as the Strait of Hormuz.”
DENVER, COLORADO, Aug. 08, 2019 -- NEW AGE BEVERAGES CORPORATION (NASDAQ: NBEV), the Colorado and Utah-based healthy products company, today announced financial results for the.
New Age Beverages (NBEV) benefits from strong brand portfolio and efforts to expand national distribution in the United States. These and other initiatives should bolster its second-quarter results.
DENVER, COLORADO, Aug. 02, 2019 -- New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based organic and natural products company, today announced that it will hold an.
As an investment, it's been tough being a bull in Hexo (NYSE:HEXO) the past few months. Still, could Hexo stock finally be worth the risk and deserving of room in your portfolio today? For that answer, let's take a look both off and on the price chart to reach a more informed decision.Source: Shutterstock Let's face it, a speculative cannabis market isn't without its very real challenges for Hexo. In large part it's why shares of HEXO have lost 55% of their value with Monday's low in hand and in just four short months. If misery loves company though, Hexo stock isn't alone either.Peers Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) and New Age Beverages (NASDAQ:NBEV) have all been hit hard. Not that these companies are interchangeable. They aren't. But in a crowded and still very young marijuana industry, some business pivoting is also inevitable. So is the very real threat that more than a few of these names will undoubtedly go belly up.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike its peers Hexo has to face the other elephant in the room. Hurting all these companies, near-term there's simply too much supply in the market. Canada of course has trail blazed with its policy of full legalization of cannabis, but adoption elsewhere has been slow. * 7 Stocks to Buy With Over 20% Upside From Current Levels In the U.S. a handful of states have opened their doors for business. Still, more meaningful acceptance, let alone national legalization, is going to take years, if ever at all. And at the end of the day, Hexo stock and its cannabis peers need regulatory approval and additional markets outside of Canada for longer-term survival and ultimately, be able to thrive.With caveats in place, Hexo stock does have at least one solid ace in its pocket. The company is entering the niche edibles and cannabis-infused beverages market with product launches set for later this year. Further, the beverage giant Molson Coors (NYSE:TAP) has Hexo's back.Hexo maintains a strategic partnership with Molson Coors. As much, resources from financial support to Molson's marketing, distribution and operational expertise give Hexo a critical early advantage as it looks to successfully build its brand.It goes without saying the Molson Coors deal is big, but not the end all, be all either. But Hexo stock could be offering today's investors another important ace on the price chart. Maybe. Hexo Stock Weekly ChartDespite the pressure on the cannabis industry the past few months and HEXO's own precipitous corrective move, shares remain in an uptrend. That's a rarity within the group. And with Monday's low, shares have also established what could prove to be an intermediate low into key technical support. Click to EnlargeThe weekly chart for Hexo stock shows shares are in a testing position of its lifetime 62% retracement level. In of itself, the deep challenge is attractive from a contrarian perspective. I'm also upbeat as the price action is occurring around HEXO's past pre-euphoric highs from early 2018 after a prior failure in late 2018 of this lateral support. Lastly, stochastics is oversold and generating a bullish crossover signal.If a higher weekly low pattern in Hexo stock can be confirmed at current levels, it should be of technical interest to investors willing and able to allocate some speculative capital into the cannabis space. Bottom-line though, continuing to use the price chart to manage downside exposure and avoid a position going up in smoke is required for investing in Hexo stock.Disclosure: Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Small-Cap Stocks to Buy Before They Grow Up * 7 Stocks to Buy With Over 20% Upside From Current Levels * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Why and How You Should Buy Hexo Stock appeared first on InvestorPlace.
With estimates forecasting the global cannabis market to reach $66.3 billion by 2025, analysts and investors alike are placing bets on which stocks in this emerging industry are best positioned to reap the biggest rewards from this significant opportunity. While the space is subject to regulatory headwinds and is many years from realizing its full potential, some companies have resonated with analysts as potentially lucrative investment opportunities. Here are three stocks with Moderate Buy consensuses that are expected to dominate in the competitive cannabis landscape.Is New Age Beverages Stock a Buy with 200% Upside?New Age Beverages (NBEV) produces and distributes healthy functional beverages that are lauded for being all natural and organic. Adding to their existing line of dietary supplements and ready-to-drink beverages, NBEV is developing a line of CBD-infused beverages. In December, the company announced that it is acquiring Morinda Holdings for a cash-and-stock deal worth $85 million. The deal is highly favorable for the company as it now has access to Morinda’s larger product portfolio and distribution network in 60 countries around the world.Roth Capital analyst David Bain agrees that the acquisition is beneficial as it will allow NBEV to be global in its CBD launch. Bain’s bullish sentiment is demonstrated through a Buy rating and price target of $11 (200% upside!), which is the highest price goal for the stock among analysts (To watch the analyst’s track record, click here).Bain noted, "Checks cite a June +48% month-over-month result for Morinda China. We believe the Morinda China’s June result gives visibility for NBEV’s CY19 $320mm revenue guidance (while also boosting 2Q19 results)."Bain notes that New Age’s 2Q19 gross revenue guidance of ~65mm could prove conservative considering the recent China and Japan Morinda results but feels that maintaining CY19 guidance would serve to bolster NBEV’s current valuation.With promising synergies from the recent acquisition on the horizon, Bain is not alone in his bullish outlook on NBEV stock. TipRanks analysis of 3 analysts shows a Moderate Buy consensus, with two analysts saying Buy and one recommending Hold in the last three months. The average price target among these analysts stands at $8.33, which represents ~125% increase from current levels. (See NBEV's price targets and analyst ratings on TipRanks)Aurora Cannabis Has Plenty of Juice to Rally HigherAurora Cannabis (ACB) is the world’s second largest cannabis company by market cap. It is a licensed producer of marijuana in Canada with sales and operations in 23 international countries. ACB’s production profile allows it to reach an expected annual run rate of over 625,000 kg per year.Cowen analyst Vivien Azer’s belief that Aurora’s cultivation footprint “provide ACB with the necessary infrastructure to weather early storms in adult use while continuing to grow higher-value revenues in the medical market.” That's enough for Azer to rate the stock a Buy with a C$15 price target, which implies nearly 140% upside from current levels. (To watch Azer's track record, click here).Azer points out that in addition to its leadership position in capacity, Aurora’s growing supply will also serve to bolster profitability. Further, through its large-scale production network and near-term operating leverage, ACB distinguishes itself as one of the few Canadian LPs positioned to reach positive EBITDA as soon as 4Q19 at a time when many peer companies in the industry have struggled with profitability.Beyond Aurora’s current operational rigor, many believe that the announcement of a major partnership could be a significant catalyst for Aurora’s stock. Azer expects “ACB to add at least one strategic partner in 2019 (likely brokered by strategic advisor Nelson Peltz) with the company focused on opportunities across a number of consumer and medical verticals.”Despite acknowledging potential obstacles ACB could face including increasingly restrictive regulatory roadblocks and lower than expected consumer demand, Azer is still steadfast in her belief that “ACB should trade at a premium to the peer group given its near term path to profitability in conjunction with strong early stage execution within the nascent Canadian cannabis adult use market.”All in all, given the infrastructure ACB has built to take advantage of the always-changing market, Azer is confident that Aurora is well-positioned to dominate globally. Wall Street is almost evenly split between the bulls and those choosing to play it safe. Based on 9 analysts polled in the last 3 months, 5 rate ACB stock a Buy, while 4 maintain a Hold. Notably, the 12-month average price target stands at $9.98, marking a nearly 60% in return potential for the stock. (See ACB's price targets and analyst ratings on TipRanks)This Analyst Likes HEXO Stock… Should You?In July, HEXO Corp. (HEXO) uplisted to the NYSE with the clear intent of attracting long-term investors. Looking back, HEXO received a lot of buzz after announcing its joint venture with Molson Coors Brewing that will focus on cannabis-infused beverages. Beyond this value-add partnership––which opens the company to what could become a $1.4 billion canna-beverages market by 2023––HEXO is an innovation-forward organization with an impressive growing pipeline of differentiated products.Desjardins analyst John Chu looks at HEXO’s ramped up production and 4Q FY19 and FY20 net revenue guidance as promising potential upside for the stock. With a bullish outlook for the company, the analyst rates HEXO a Buy rating with a C$14 price target, which implies nearly 144% upside from current levels. (To watch Chu's track record, click here).Chu believes that HEXO’s infrastructure, which prepares it for edibles legalization, positions the company to have a major first-mover advantage over most of its peers and capture a fair share of the Canadian market. The analyst notes that “signs point to industry sales improving on the back of increased distribution in Québec, Ontario and Alberta, which should benefit HEXO given its production ramp-up” of its new greenhouse and Belleville facility. With continued expansion projects, the company should be able to overcome the previous bottleneck and accommodate higher packaging capacity.Even though HEXO is losing money more slowly than its larger peers, near-term margins could face headwinds as the company expands its capacity. On the back of a 20,000kg supply contract with Québec, however, the analyst has more confidence in HEXO’s sales outlook than other companies in the industry. In fact, Chu shares that “there are fewer companies focused on advanced products (eg edibles) and/or that a limited number of those companies will have products ready when legalization starts.” Beyond its ambitious plans for Canadian legalization and to be a top 3 player in Canada, HEXO is positioning itself to be in eight U.S. states by the end of 2020 and plans to have a few Fortune 500 partners by then.With HEXO primed to reap the rewards of its hard work, Chu is not alone in his support of the company, as TipRanks analytics showcase HEXO as a Moderate Buy. Out of 6 analysts polled in the last 3 months, 3 are bullish on the stock, 2 remain sidelined, while 1 is bearish. Worthy of note, the 12-month average price target stands at C$10.02, which implies nearly 75% upside from current levels. (See HEXO's price targets and analyst ratings on TipRanks)
Shares of Aurora Cannabis (NYSE:ACB) haven't been looking so hot. In fact, on July 12 alone, shares tumbled more than 5%. But the fall did more than give investors a sour ending to the week. It sent shares through a key level of support and all but put the nail in the short-term coffin of pain.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsOK, maybe that's a little extreme. But the point is that ACB stock is not looking healthy on the charts. While that doesn't mean Aurora Cannabis can't bounce back and repair some of that technical damage, it makes it a lot harder to do so. From an investing standpoint, I like to blend technicals and fundamentals. When the technicals are not strong -- like with ACB stock -- we need to lean more heavily on the fundamentals. When the fundamentals are not the stock's strong point, we need the technicals to display strength. Unfortunately for Aurora Cannabis stock investors, while its end market looks to be a long-term opportunity, its fundamentals are not that strong in the short term. Without technicals to lean on, this stock could have more downside coming. Trading ACB Stock Click to EnlargeWith shares of ACB dumping on Friday, the stock lost a key level of support between $7 and $7.25. For the stock to even come close to repairing some of this damage, it needs to reclaim this former level of support. * 7 Dependable Dividend Stocks to Buy The risk here is two-fold, with the first being that Aurora Cannabis stock continues to head lower. The second risk is that it rebounds back up to the $7 to $7.25 range, which then acts as resistance. That would be bad news for the bulls. On Monday, ACB stock was rallying back toward that prior range support, so we should know relatively soon whether it can reclaim this area or if it will be found as resistance. At least we don't have to wait long to find out. Should ACB stock reclaim that key support area, it may run up toward $7.50 to $8. But here's the problem for traders looking to take ACB on the long side. Even if it reclaims prior support, it has to push through this next area too, before looking healthy again. And what's between $7.50 and $8? Just 2019 downtrend resistance (blue line), the 20-day, 50-day and 200-day moving averages. I'm not saying ACB stock is the worst equity to buy or that it's doomed. But until it repairs its technical damage and starts to put together more constructive price action for the bulls, it's a hard one to go long. Particularly as the PowerShares QQQ ETF (NASDAQ:QQQ) and SPDR S&P 500 ETF (NYSEARCA:SPY) are hitting new all-time highs. The breakdown in ACB stock was actually preceded by Canopy Growth (NYSE:CGC). CGC stock broke down ahead of ACB and led the way lower for a number of cannabis stocks. What's Up With Cannabis Stocks?So what's leading this charge lower? Because it's not just CGC and ACB stock. Cronos Group (NASDAQ:CRON), New Age Beverages (NASDAQ:NBEV), Aphria (NYSE:APHA) and others are all taking a very similar bearish setup. On the charts, this setup is known as the bearish descending triangle. Simply put, it's when trend is pushing shares lower against a static level of support. When support gives way, the bearish setup starts to play out, forcing share prices lower. The question is, why is the entire industry all setting up in the same manner? * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Things really started to unravel when Canopy Growth -- which many consider the "blue chip" stock of the bunch -- ousted its CEO. Canopy was volatile but stable that day, but has been under pressure all month since. It seems to have turned investors into sellers throughout the group, as the cannabis industry awaits a new catalyst. That's even as growth has been incredible, with many of these names turning in earnings reports of triple-digit revenue growth gains.While Aurora Cannabis missed analysts' estimates, it still churned out revenue growth of 289% last quarter. That said, most of these names -- ACB included -- do not generate profits and do not have the strongest financials. Thus, we need the technicals to behave better to justify a long position. For now, I'd wait before establishing a position in ACB stock. Long-term investors may opt to accumulate the stock, but I would rather wait until the stock looks healthier. One alternative would be a position in Constellation Brands (NYSE:STZ), which owns 40% of CGC, but has strong fundamentals and a good-looking chart to boot. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell held no position in any aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post Does Aurora Cannabis Stock Chart Point to a Mid-Summer Plunge? appeared first on InvestorPlace.
Cannabis stocks need to fight their way out of their funk. That's true for names like Canopy Growth (NYSE:CGC) and New Age Beverages (NASDAQ:NBEV), but it's critical for Cronos Group (NASDAQ:CRON). CRON stock is not only down by a third since its March high, but is on the verge of breaking under a crucial technical support level.Source: Shutterstock Some -- perhaps most -- would argue that the shape of a chart is irrelevant. A chart's history shouldn't dictate its future. Rather, a company's results and prospects are reflected in its stock's movement.The fact is, however, the movement of a marijuana stock shapes the rhetoric about that company as much as it's shaped by the rhetoric. If Cronos stock slips any further, it would become alarmingly easy for the masses to view it as a liability.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Charting CRON StockIt's not difficult to see.After an overheated rally in January and February set the stage for significant profit-taking in March and April, the 200-day moving average line (plotted on the white line on the chart below) began to serve as a technical floor. It's not yet become a pushoff point, though, and it doesn't appear it's going to. Just within the past several days the sellers have tested the pivotal 200-day moving average line as support again, and it's failing to even modestly repel the effort.The 200-day moving average line is regarded by some as the most important of all the trend indicators. It's admittedly simplistic, but still has significant psychological implications because so many traders still see it as a make-or-break level. * 7 Retail Stocks to Buy for the Second Half of 2019 There's modest encouragement in the fact that the weakness since March's high has been on relatively low volume. That suggests there's not necessarily a great deal of conviction behind the selling; investors are just biding their time.Conversely, the fact that the other aforementioned names, like most marijuana stocks of late, are falling is a red flag. Group-wide movement tends to indicate longer-lived, philosophical doubt. Analysts Still in DoubtStill, Cronos Group stock is a standout for all the wrong reasons. Chief among them is the fact that among all cannabis stocks, CRON stock remains one of the analyst community's least favorite.As of the most recent look, analysts collectively rate Cronos at a little less than a Hold … tiptoeing into Sell territory. Rivals New Age Beverages and Canopy Growth, for perspective, are considered a Buy and something that's almost a full Buy, respectively. Hexo (NYSEAMERICAN:HEXO) is also closer to a Buy than a Hold. Click to EnlargeReasons for the pessimism range from lack of clear capital spending plans to a sheer lack of story in an environment where a company's story is a powerful marketing tool. Given that the $1.8 billion investment Altria Group (NYSE:MO) made in CRON stock has now been closed for weeks as well, one would have expected a more definitive direction for a partnership than we've seen yet.More than anything though, analysts still take issue with the stock's crazy valuation.Cronos sports a $4.8 billion market cap, and though revenue of $6.5 million was only a fraction of what the company could be driving in just a few quarters, even the most optimistic of plausible output levels will fall short of justifying that sort of price. It's a reality made even more amazing considering analysts have cared little about other similarly frothy valuations among cannabis stocks. Wait and See on CRON StockIt's certainly possible CRON stock could dig its way out of trouble and use its 200-day moving average line as a launchpad rather than a trigger for more trouble. The stock's yet to break below it. * 10 Stocks to Sell for an Economic Slowdown Those hopes are fading fast though, as the broader realities of the legal marijuana business sink in. The most overvalued names in the business also make for the most susceptible targets. That's Cronos, to be sure.Whatever's in the cards, it's certainly not a time to step into the pot name. Newcomers will want to wait for a little more clarity before doing anything.The world will get a big dose of that clarity in the first half of August, when Cronos will be reporting its Q2 numbers.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Cronos Needs to Show the Market Something to Pull Stock Out of Funk appeared first on InvestorPlace.
As a result, New Age Beverages now owns the licensing and distribution rights to some of the most popular drink brands within the United States. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 -- Click here to learn more! “We have been extremely busy integrating BWR and New Age," said Brent Willis, New Age Beverages CEO.
BWR owns key licensing and distribution rights in the United States for healthy positioned and fast growing beverages such as Nestea Ready to Drink teas, Volvic Natural Spring Water, Illy Ready to Drink Coffee in retail channels, Evian Natural Spring Water in the Natural Channel and Found Sparkling beverages , Kusmi Tea, Saint-Géron Sparkling Water and select natural and organic snacks such as Nature Addicts, Grand-Mere, Lucien Georgelin and La Mere Poulard. Consideration for the transaction was $2.5 million which was utilized to eliminate 100% of BWR’s debt, plus a $500,000 payment to the sellers. We will also issue up to 700,000 restricted shares of New Age common stock which may be reduced following a final working capital covenant calculation.
Every investor in New Age Beverages Corporation (NASDAQ:NBEV) should be aware of the most powerful shareholder groups...
Aurora's focus on medical marijuana patients and international expansion could put these three companies on its buyout radar.
Aurora Cannabis (NYSE:ACB) is already Canada's biggest cannabis grower, and has set the stage to become one of the world's biggest by around this time next year. But on the other hand, ACB stock has made absolutely no progress since the end of 2017.Granted, it's not the only marijuana stock that's struggled to gain traction. Canopy Growth (NYSE:CGC), once the poster child for investing in marijuana stocks, has lost much of its luster, and as of earlier this month is looking for a new CEO. Neither New Age Beverages (NASDAQ:NBEV) nor Tilray (NASDAQ:TLRY) has been able to come close to holding on to its explosive gains reaped in September of last year.That's not the performance many latecomers to marijuana stocks were expecting. ACB stock, however, has been particularly disappointing.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 A-Rated Stocks to Buy for the Rest of 2019 Although acknowledged by few cannabis investors, the reality is that marijuana stocks aren't paying off the way they were supposed to be paying off by this point.That could be about to change. Mortgaging the FutureInvestors don't own stocks for where they've been. They own the shares for where they're going.So the interest in marijuana stocks has been and remains understandable. Jefferies believes the global market for legal cannabis could reach $130 billion by 2029. Aurora Cannabis, which is building an international business, should benefit from that trend. For instance, late last year it shelled out nearly $300 million worth of ACB stock to acquire Latin American outfit ICC Labs.But Aurora Cannabis, perpetually cash-strapped, is using ACB stock in lieu of currency, diluting existing shareholders' stake.That's not terribly unusual. But it's not necessarily ideal to utilize the practice to the extent Aurora Cannabis has. As of the first quarter of 2017, 313 million shares of ACB stock were issued and outstanding. Now more than 1 billion shares of Aurora stock have been issued.The practice, in short, whittles down the potential reward of ACB stock without reducing its risk. That's not something all the owners of ACB stock signed up for. It's also likely that Aurora's growth-by-acquisition strategy will drive further dilution of Aurora Cannabis stock.Analysts, though, are still largely upbeat on ACB stock. Is a Payoff Imminent?The most obvious counter-argument to the practice is also the best one. That is, it takes money to make money. Without money, stock is the next-best option.If there's a positive side to all the expensive acquisitions though, it's yet to fully appear.But it may be too early to expect Aurora's investments to bear fruit. Canada only legalized recreational marijuana in October of last year, and the rest of the world is only at various stages of legalization.On the flip side, the cannabis movement is hardly brand new. Non-psychotropic CBD has been legal for years, even though interest in its potential continues to swell. By this point, there should at least be evidence that Aurora Cannabis, along with its peers, is en route to sustainable net earnings.And there is. By early next year, Aurora should be in the black, even if just barely.Cowen analyst Vivien Azer says the company could post its first positive quarterly EBITDA , which would also be the cannabis industry's first -- when it reports the results for its quarter that ended last month.Analysts can be wrong. It's also worth noting that no other analyst besides Cowen's Azer thinks that ACB generated positive EBITDA last quarter. Still, ACB is moving in a generally positive direction, and that should be positive for Aurora stock. The pace of forward progress still matters, however. Investors are growing impatient. Looking Ahead for ACB StockIn the simplest terms, this has turned into a horse race. Can the company start to show signs of enough life within the next few quarters to justify the dilution ACB stock owners are being forced to digest? The go-nowhere volatility demonstrated by Aurora stock for more than a year and a half says investors have doubts.The pros, however, remain undeterred.The opposing expectations are making Aurora Cannabis stock tough to trade, and ACB stock will likely remain erratic until it's clear Aurora can turn a meaningful profit or clearly can't. Dilution will only add to the erratic action, as traders attempt to price in that headwind.The bottom line on ACB stock is that if Azer's optimism isn't quite merited, the next several months could be as inconsistent as the past few have been. Don't get your hopes up, and remain patient. Aurora Cannabis stock is likely to morph into a long-term dance… a true investment, rather than a mere trade.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post Analysts Say the Dilution of Aurora Cannabis Stock Will Eventually Be Worth It appeared first on InvestorPlace.
The valuations of marijuana stocks are generally off the charts. Tilray (NASDAQ:TLRY) stock sports a market cap of $4.5 billion while Cronos Group (NASDAQ:CRON) is at $5.3 billion and Canopy Growth (NYSE:CGC) trades at a hefty $13.9 billion. These valuations are reminiscent of the wild dot-com days when companies with minimal revenues were speculatively bid up, based on their potential growth opportunities.Yet there are still relatively cheap cannabis producers. Just look at New Age Beverages (NASDAQ:NBEV) stock. Consider that the market cap of NBEV stock is a mere $337 million. What's more, NBEV is trading at a relatively reasonable 3.4 times its sales (by comparison, red-hot marijuana stocks can easily have multiples of over 50 times their sales). Since October, New Age Beverages stock actually has been in a downward trend, going from nearly $10 to $4.66.Founded in 2010, NBEV began with a focus on healthy brands. According to NBEV's website, "While our core function is to deliver healthy alternatives to the planet, we believe companies have a responsibility to positively impact society and function as global agents of change. Our goal is to inspire positive shifts in the lives of those we reach by providing best-in-class 'Better for You' products & valuable content that motivates people to take ownership of their health and radically pursue their life's purpose."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 F-Rated Stocks to Sell for Summer That's a lofty mission. NBEV has drawn on science and innovation, including 11 patents, as it looks to accomplish those goals. For example, its flagship product is ENHANCED Recovery, which is a hydration beverage that uses micronutrient science.NBEV has been transforming itself recently by investing aggressively in the development of CBD-infused drinks. These beverages feature cannabidiol, or CBD, from the cannabis plant, which is a component of marijuana that does not produce highs. There have been indications that CBD can alleviate a number of medical conditions, including pain.Late last year, the company launched its first drink, called Marley (it's a reference to the legendary singer, Bob Marley). As should be no surprise, the launch supercharged NBEV stock.NBEV has also been aggressive when it comes to M&A. In December, the company acquired Morinda, which has a set of healthy beverages that are distributed across more than 60 countries. NBEV hopes that, by becoming a great platform for developing CBD drinks, Morinda will meaningfully boost NBEV stock.NBEV also bought Brands Within Reach, which has licensing and distribution rights to brands like Nestea, Volvic and Illy Ready to Drink Coffee. That deal will provide NBEV with exposure to large retail customers like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST).According to the press release announcing the deal: "BWR and New Age together will have the most extensive one-stop-shop of healthy beverages available to any foodservice or retail customer in North America, with an extensive low-cost national distribution and logistics footprint." The Bottom Line on NBEV StockThere are several analysts who are upbeat on the prospects of NBEV stock. Roth Capital has an $11 price target on New Age Beverages stock, while Compass Point has a $9 price target on the name.But I think the Street's enthusiasm about NBEV stock may be overdone. Most of NBEV's revenue comes from healthy/performance beverages, which is generally a relatively small, crowded niche.More importantly, the company's CBD opportunity is still in the early stages, and the CBD market's growth outlook is far from clear. Besides, large cannabis players like CGC, which is backed by Constellation Brands (NYSE:STZ), and Hexo (NYSEAMERICAN:HEXO), whose main partner is Molson Coors (NYSE:TAP), are also looking to enter the space. If anything, these companies seem much better positioned -than NBEV and are likely better investment opportunities than NBEV stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.Compare Brokers The post The Buzz May Be Over for New Age Beverages Stock for Awhile appeared first on InvestorPlace.
Asian Stocks Down, Europe Berates Iran on Nuclear Deal Chinese stocks (NYSEARCA:ASHR) are down this morning on news that President Trump didn’t actually promise Chinese President Xi Jinping a six-month hiatus on new tariffs, as widely reported in the media yesterday. So 25% tariffs on $300 billion Chinese goods coming into the US could come […]The post Market Morning: No China Promises, Democrats Debate, New Age Crossfire, Russian Stocks Bullish appeared first on Market Exclusive.
New Age Beverages Corporation (NBEV) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.