Kona Gold Stock (OTCMKTS:KGKG) Down But Not Out

Kona Gold Stock (OTCMKTS:KGKG) has plunged to its lowest price in more than a year. That is the result of a downtrend that kicked off in earnest in August.

If we look at Kona Gold’s investor relations site and go to the press release section, we see that the company has made several announcements about its business activities and developments since August. However, none of these announcements have been able to halt the slide in the stock.

About Kona Gold stock

Kona Gold Solutions is a Delaware corporation that operates several wholly owned subsidiary businesses. Through its subsidiaries, Kona Gold is engaged in the production and sale of hemp-based products, mostly beverages.

Kona Gold stock has a track record of bouncing back from its lows

Kona Gold has a history of bouncing back from its lows. In September 2018, Kona Gold was trading at $0.011, lower than its current price. But the stock bounced back and was trading at $0.118 in November, delivering a return of more than 970% in a space of just two months. In January 2019, Kona Gold was again at one of its lows at $0.47. But by February, the stock was up at $0.91, returning 94% in a period of just about one month. In April 2019, Kona Gold was down at $0.72. But in a space of about one month, the stock had sprinted back up at $0.143, returning 99%.

Therefore, with Kona Gold having hit the bottom, we are at a moment when it looks primed for a strong breakout.

But beyond the historic price actions, there are even more reasons to be bullish in Kona Gold. Here are some of the reasons:

Kona Gold stock continues its exponential revenue growth

Kona Gold is growing exponentially. For the first three quarters of 2019, the grew revenue by 1,8450% year-over-year, reflecting the strength of both existing products and those recently brought to market. The management expects Kona Gold to continue its robust growth.

Kona Gold forecast revenue of $1.5 million – $2 million for 2019. The company has already hit the low end of that revenue target and is now firmly on track to reach the high-end of the target. For 2020, Kona Gold is currently projecting revenue at $6 million – $8 million.

Kona Gold stock strengthens its executive team

A strong leadership team is important for a company that wants to succeed and create the value that would make shareholders happy. Kona Gold has been working to strengthen its executive team to ensure that it has dependable people in every leadership position. Therefore, the company recently hired a chief financial officer and a director of national sales.

For the chief financial officer role, Kona Gold hired Lori Radcliffe, who joined the company from a prestigious accounting firm. Kona Gold is counting on Radcliffe to help it become a fully reporting company. Moreover, Radcliffe has also been tasked with completing all the requirements that Kona Gold needs to work on before it can upgrade its stock listing.

For the director of the national sales role, Kona Gold tapped sales veteran Paul O’Renick. Kona Gold has tasked O’Renick to help grow sales in Florida, Georgia, and Alabama. Moreover, Kona Gold counts on O’Renick to lead sales efforts in the western region of the United States, where the company is particularly keen to expand its distribution. O’Renick brings more than 20 years of experience leading beverage sales efforts.

To further strengthen its executive team, Kona Gold is currently searching for a sales manager for the West Coast region.

Kona Gold stock widening its distribution network

Kona Gold aims to be a national brand and a household name, which it hopes will contribute toward boosting its sales and create more shareholder value. Toward this end, the company has been expanding its product distribution network. In recent months, Kona Gold has added several partners to its distribution network. The most recent addition is Alabama-based AlaBev, which will help place Kona Gold products in new markets across the state. The addition of AlaBev is part of Kona Gold’s shift to work with established distribution partners to rapidly broaden its customer reach.

“As we continue to gain market share in the functional beverage segment, it’s imperative that we partner with established and experienced beverage distributors that can have a big impact in key markets,” commented Robert Clark, CEO of Kona Gold.

Kona Gold is widening its distribution network at a time when it is also introducing new products to the market that it hopes will fuel future sales. One of Kona Gold’s recently launched products is Kona Pink drink, which the company is already shipping to its established distribution partners. Moreover, customers can purchase a Kona Pink drink from the company’s website as well as on Amazon.

Bottom line

Kona Gold’s plunge to the bottom can be a big scare. But this is a stock with a track record of recovering from its lows with excellent returns for investors. Therefore, Kona Gold’s current low may be nothing but a huge bargain opportunity considering its fundamental strengths.

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Disclosure: We have no position in Kona Gold stock and have not been compensated for this article.