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New Age Beverage (NASDAQ:NBEV) Solid Fundamentals Amidst Price Slump

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New Age Beverage

New Age Beverage (NASDAQ:NBEV) has taken a significant beating since the start of the year. A 60% plus slide attests to a stock under immense pressure. Amidst the underperformance in the stock market, the company has continued to do exceedingly well when it comes to core business execution and operation efficiency.

New Age Beverage Catalysts And Price Analysis

 Triple-digit revenue growth is one of the developments that continues to affirm the company’s long-term prospects. The company also remains well-positioned to generate bottom-line growth backed by robust retail channels in the U.S as well as expansion in Asia. Integration of Morinda operations in China is another development likely to continue strengthening the company’s bottom line going forward.

 A spike in implied volatility in the options market is the latest development that signals a potential turnaround in the direction of trade. Huge implied volatility indicates that trade is developing. What is clear is that the stock has taken a significant hit and may be due for a correction higher, given the improving fundamentals.

Increased activity around the $2.50 Put options could signal a potential change in the direction of trade. After the recent slide lower, the stock needs to rise and find support above the $2.40 resistance level. A rally past the $2.40 level should reaffirm New Age Beverages bounce back prospects.

Above the crucial resistance level, the stock should be on its way to the $3.30 mark, the next substantial resistance level. Conversely, failure to take out the $2.40 resistance level, could leave the stock susceptible to further drops in continuation of the long term descending trend line.

About New Age Beverage

New Age Beverage is a health products company engaged in the development and distribution of a wide range of liquid dietary supplements.  Its pipeline of products includes Nestea, Illy Coffee, Volvic, and Evian. As a renowned Omni-channel company, the firm has access to traditional retail e-commerce and medical channels across 60 countries.

Sales Growth & Margin Expansion

New Age Beverage recent earnings reports provides clear evidence of the company’s growth metrics. A 427% increase in revenues to $69.8 million allowed the company to achieve the highest recorded sales. In addition to sales growth, the company also saw its gross margins expand to 57.7% from 12.8% as of last year.

Gross margin expansion was mostly as a result of positive change in both product and channel mix, especially in the e-commerce segment of the business. However, the company saw its operating expenses soar to $43.3 million from $5.1 million a year ago. The increase was a result of an increase in selling, general, and administrative expenses associated with the new scale of the business.

Brent Willis, Chief Executive Officer of NewAge, commented, “We had our best performance ever at NewAge and continue to build strength and momentum. Both China and Japan had their best results of the year, with China finishing the month of September at 5% growth versus the prior year.

New Age Beverage Outlook

Expansion of distributing platforms in both retail and direct to consumer channels should see New Age Beverages continue to post robust revenue growth. Likewise, new product introductions are expected to continue driving organic sales growth. The integration of the Morinda transaction should help position New Age Beverage as the fastest-growing beverage company in the U.S.

In October, the company reached an agreement to expand its partnership with Nestle expected to strengthen the current revenue stream. The new agreement broadens the license agreement to include products under the NESTEA Powdered Tea products

Bottom Line

New Age Beverage prospects are looking bright as it moves to flex its muscles in the multi-billion-dollar cannabis industry. Its growing offerings of CBD related offerings should help diversify the current revenue stream. The company also remains well-positioned to generate significant top and bottom-line growth on the FDA approving the sale of CBD beverages and edibles in the U.S.

With options market indicating a surge in implied volatility, it could be a matter of time before the stock bounces off current lows on investors taking note of the improving fundamentals.

We will be updating our subscribers as soon as we know more. For the latest updates on NBEV, sign up below!

Disclosure: We have no position in NBEV and have not been compensated for this article.

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CBD Stocks

Can Isodiol International Inc (CNSX:ISOL)(OTCMKTS:ISOLF) Break Out From Here?

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Isodiol International

Investors have jumped on Isodiol International Inc (CNSX:ISOL)(OTCMKTS:ISOLF) stock this month. The stock gained 62% on January 21, marking its best day so far in 2020. The stock has already gained 106% year-to-date. But do not think even for a minute that investors have warmed up to Isodiol stock for nothing. This is a stock with tremendous potential and at this point, the stock is just showing early signs of what is going to be a big breakout.

In case you are wondering why investors have started jostling for a piece of Isodiol early on in the year, this report answers that question and more. But before we delve into the details, it is important to first understand the company we’re discussing here.

About Isodiol International

Isodiol International is a Canadian company that has specialized in the making of pharmaceutical and consumer products derived from hemp. It makes CBD products derived from hemp grown and processed in the United States. Though Isodiol’s operations are currently concentrated in North America, the company has big expansion dreams. It has set its sights on expanding into Latin America, Asia, and Europe.

What exactly is drawing investors to Isodiol stock and why does it stand out as a good pick in the hemp/cannabis stock universe in 2020? The simple answer is that investors are beginning to realize Isodiol’s bright prospects as a CBD products company.

Isodiol bidding for…

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Charlotte’s Web Stock (TSE:CWEB) (OTCMKTS:CWBHF) Poised For Breakout And Here’s Why

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Charlotte's Web Stock

Charlotte’s Web Stock (TSE:CWEB) (OTCMKTS:CWBHF) is currently at one of its lowest price levels in about five months. That is the result of a selloff that kicked off toward late September after the stock reached one of its highest watermarks at $23 in August.

You cannot rule out profit-taking as having contributed to the decline that has brought the stock to its current lows considering the stock pulled up from one of its lowest levels this year in July before the August breakout. A repeat of the August bull run that powered CWBHF to one of its highest price levels this year seems to be in the offing.

Firstly, after a string of declines for much of last week and early this week, CWBHF has begun showing signs of a comeback. The stock closed the last session (November 5), up. Now the stock has found immediate support at $10.9 from where it looks set for a powerful breakout as happened in March, June, and July.

In March, for instance, CWBHF bolted from a low of $13 on March 8 to reach its one-year peak of $25 in a space of fewer than 30 days on April 4. Profit-taking kicked off after that and the stock fell to around $10 in mid-June, from where it began rising again, topping $18.5 in early July. Investors again took profit and toward late July the stock was back down at around $13.5.…

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CBD Stocks

CV Sciences, Inc. (OTCMKTS:CVSI): You Don’t Want To Miss This Bounce Back

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OTCMKTS:CVSI

CV Sciences, Inc. (OTCMKTS:CVSI) is currently trading at one of its lowest price points in about a year. The decline that has taken the stock to its current lows began unfolding in mid-September.

By late September, CVSI had lost so much ground that the stock was trading below $1.60. However, it again began moving up and in early October the stock had climbed back up enough to flirt with $2.60. From that level, CVSI retreated and by mid-October it was doing rounds at about $1.85. The stock began climbing back up again and toward late October it was trading well above $2. But in late October until now it has begun pulling back again, closing down in three of the last five trading sessions.

Looking at the charts, you cannot dispute that CVSI has demonstrated a pattern that investors can take advantage of to profit from the stock in short-terms. After rallying, CVSI tends to pull back, thereby allowing investors who may have missed its previous bull run to get on board before it begins another flight. Therefore, you shouldn’t be surprised if CVSI sharply reverses course and begins trending up from current levels.

About OTCMKTS:CVSI

CVSI is a hemp CBD company that makes products for both consumer and therapeutics markets. The company operates production facilities that follow good manufacturing practices. Its PlusCBD Oil product has been noted as the top-selling hemp CBD brand.

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