“This is just the first initiative that we expect to do with them on the Marley brand and other New Age products on which we are in active discussions,” said Craig Thibodeau, New Age’s VP of Key Accounts, in the press release.
It’s a big deal for sure. And Walmart expects a lot, as InvestorPlace contributor Will Healy noted in January, advising that all owners of NBEV stock might want to reconsider their expectations in the weeks and months ahead.
Thanks to the Walmart deal and NBEV’s $85 million acquisition of Morinda Holdings, CEO Brent Willis expects revenue to grow to around $320 million in 2019. Of course, he didn’t say how much it will lose.
When social media micro-blogging company Snap Inc. (NASDAQ:SNAP) made its debut on the market two years ago, many analysts were wondering where exactly the company was headed. Not only did the SNAP stock IPO describe it as a “camera company,” but the firm’s employees themselves admitted that they weren’t sure about the the long-term plan.
Source: Shutterstock The latest development in Snap’s advertising expansion is a partnership with Shopify (NYSE:SHOP), an e-commerce platform that helps businesses manage every aspect of their online presence in one place.
Shopify users can already buy ad-space with Facebook (NYSE:FB), but now they will also have the option to create ad-campaigns for Snapchat as well. This could be a huge step forward for SNAP’s advertising arm as it gives small businesses without a dedicated social media marketing team the ability to leverage the site easily. That accessibility is key, especially when you consider that SNAP caters to a much younger generation.
The Shopify partnership coupled with SNAP’s latest features and advertising offerings make the firm look much more attractive. Plus, I like the company’s AR potential as well as it’s gaming addition.
Bordeaux, hub of the famed wine-growing region, is a port city on the Garonne River in southwestern France. It’s known for its Gothic Cathédrale Saint-André, 18th- to 19th-century mansions and notable art museums such as the Musée des Beaux-Arts de Bordeaux. Public gardens line the curving river quays. The grand Place de la Bourse, centered on the Three Graces fountain, overlooks the Miroir d’Eau reflecting pool.
New Age Beverages Corp (NBEV) stock has gained 17% today after announcing the distribution expansion of their Marley brand with Walmart.
The average rating from Wall Street analysts is a Strong Buy. Stock Score Report, InvestorsObserver’s proprietary scoring system, gives NBEV stock a score of 57 out of a possible 100.
That score is chiefly influenced by a short-term technical score of 67. NBEV’s score also includes a long-term technical score of 52. The fundamental score for NBEV is 51. In addition to the average rating from Wall Street analysts, NBEV stock has a mean target price of $8.75. This means analysts expect the stock to rise 51.91% over the next 12 months.
New Age Beverages Corp is beverage company. It is engaged in the development, marketing, sales and distribution of a portfolio of Ready-to-Drink (RTD). The company’s target market is currently health-conscious consumers, who are individuals who are becoming more interested and better educated on what is included in their diets, causing them to shift away from options perceived as less healthy such as carbonated soft drinks or other high caloric beverages, and towards alternative beverages choices.
It markets, sells, and distributes current brands including XingTea, XingEnergy, Aspen Pure, and Bucha Live Kombucha brands, and to develop new healthy functional beverage products. It operates in Morinda and New Age segments. The New Age segment accounts for majority revenue of the firm.
The cannabis market has begun to garner worldwide attention as more countries move to adopt cannabis legislation. Primarily, most countries are looking to adopt medical cannabis laws. Countries that have adopted medical legislation are leveraging cannabis to treat certain medical applications such as cancer, chronic pain, epilepsy, Alzheimer’s, and Parkinson’s disease. Throughout the past year, the cannabis industry has made significant milestones as the U.S. Food and Drug Administration approved its first cannabis-derived drug to treat epilepsy in children. Shortly after, the U.S. Drug Enforcement Agency removed CBD, or cannabidiol, off the Schedule 1 list. CBD-based products that have less than 0.1% THC concentrate will now be considered a Schedule 5 drug, as long as the medication has been approved by the FDA.
Furthermore, the FDA recently scheduled a public hearing to be held in May as the agency looks to legalize CBD in food and drinks. The combination of these events has led to the exponential growth of the overall cannabis market. Moreover, as legalization efforts continue, other countries are expected to be influenced and potentially follow in legalizing cannabis. According to data compiled by Grand View Research, the global legal marijuana market was valued at USD 9.3 Billion and is expected to reach USD 146.4 Billion by the end of 2025. Additionally, the market is projected to register a CAGR of 34.6%. CLS Holdings, USA Inc. (OTC: CLSH) (CSE: CLSH.U), Charlotte’s Web Holdings, Inc. (OTC: CWBHF) (CSE: CWEB), Cresco Labs Inc. (OTC: CRLBF) (CSE: CL), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT)
Decades ago, cannabis was internationally illegal. Now, countries including Australia, Canada, Columbia, Germany, the Netherlands, Spain, and the U.S. have all adopted cannabis legislation of some form. Moving forward, as more governments and regulatory agencies focus on the topic of cannabis legalization, the cannabis industry can become the next emerging global market. “It’s critical that we address these unanswered questions about CBD and other cannabis and cannabis-derived products to help inform the FDA’s regulatory oversight of these products — especially as the agency considers whether it could be appropriate to exercise its authority to allow the use of CBD in dietary supplements and other foods,” outgoing FDA Commissioner Scott Gottlieb recently said in a statement.
Stock Down with Good News ? Follow the Lemmings
Motley has its Fools, digitalwrks has its Lemmings (follow me…..). digitalwrks got a small taste of NBEV stock earlier in the day…..
Lands a national account with Walmart for the Marley brand.
April 9, 2019, 10:08 AM EDT
New Age Beverages (NBEV) stock skyrocketed nearly 40% in Monday’s trading session as the CBD drink maker signed a major distribution deal with the largest retailer in the world. The deal shows that New Age has growth potential with or without CBD-infused beverages that skyrocketed the stock to $10 last year. A unique opportunity exists to own the stock in the $5 range.
Regional To National
For the most part, New Age was mostly a regional player lacking the capital for a national or even global rollout of the portfolio of beverages. The company has an interesting mix of drinks that include yerba mate teas like Marley, natural green tea like Xing and organic live kombucha tea like Bucha along with coconut water like Coco-Libre. Until last year, the company lacked the capital and infrastructure for a national expansion leading to weak results.
The closing of the Morinda deal made New Age a global company with a revenue base in excess of $300 million. Along the way, the company added capital providing a cash cushion in the $50 million range along with a new credit facility.
The end result is that New Age landed a national account deal with Walmart for the Marley brand. The Marley mate drink should start hitting Walmart shelves here in early April.
The deal could be just the start of a national expansion plan that could include additional retailers along with morel products at existing retailers like Walmart. The largest retailer alone has 11,300 stores and does over $500 billion in annual sales.
Capital & Take Away
In all regards, New Age is a very small beverage company. The core domestic business generated less than $60 million in gross revenues last year.
The Marley, Bucha and Xing brands were already generating strong revenue growth, but the lack of capital last year caused New Age to miss targets. The company forecast some $20 to $30 million in revenue growth this year generally from these brands when accounting for the acquired business from Morinda that placed the revenue run rate in the $300 million range.
The company already had a placeholder for an additional $30 million in CBD-infused beverage sales that could boost the revenue target above the $320 million forecast. This Walmart deal should provide another big boost for a stock with only a $360 million market cap before this announcement sent the stock soaring.
The one warning here is that New Age constantly over hypes growth expectations having missed analyst estimates every quarter in 2018. The product is shipping to Walmart distribution locations in April so the sales numbers won’t be included in earnings results until the Q2 report that wasn’t released until mid-August last year.
Some investors on Wall Street might think that Snap Inc (NYSE:SNAP) stock has run its course. But with short-sellers’ interest dwindling and focused elsewhere, a technical “lift” will inevitably drive shares higher, which makes now a good time to hop on to the bullish train for SNAP stock.
A month ago, SNAP stock surprised Wall Street by delivering stronger-than-forecast engagement numbers from its bread-and-butter younger demographic bases, as well as many other across-the-board goodies. And with Snap’s management quick to tell Wall Street it is “substantially closer to profitability”, investors did more than simply spook SNAP stock’s bearish population.
It has been a very good month since SNAP stock reported earnings. As most market watchers are aware, the report throttled shares higher by 22% in the immediate aftermath. And that’s great for investors that were already in it, to win it … well, almost everybody.
More importantly for the longer-term prospects and today’s buyers of SNAP stock, last month’s results have had the impact of shedding Snap’s short interest by more than 30% to a reasonable 7% of the float. That’s good news, but that’s not the end of the story either.
Over the period Snap shares have also put together a fully formed uptrend. And with SNAP stock now at a critical intersection of converging resistance lines, it’s anticipated a breakout is at hand as other bullish trend traders step up to the plate and the last few bears throw in the towel.
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No…Not a scene from the new Blood Diamond movie sequel
The Federal Trade Commission issued warning letters Tuesday to lab-grown diamond companies, including one backed by Leonardo DiCaprio, for advertising practices it says misleads consumers.
Zack Guzman Fri, Apr 5 5:12 AM PDT
The FTC said it found instances in which Diamond Foundry and seven other companies advertised its lab-grown diamonds in a way that might misrepresent “that a lab-created diamond is a mined diamond, or where required disclosures about the source of the diamonds are not proximate to the individual product descriptions.”
As Ada Diamonds co-founder Jason Payne explained on Yahoo Finance’s YFi PM, asking companies to be more careful about advertisements is not a net negative for the industry or for consumers looking for alternatives to mined diamonds. Ada Diamonds, which strictly sells laboratory-grown diamond jewelry, was among the companies that received a letter from the FTC.
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HEXO over $16.2 million in total gross revenue in the second quarter of fiscal 2019
GATINEAU, Quebec, March 14, 2019 (GLOBE NEWSWIRE) — HEXO Corp (TSX:HEXO; NYSE-A:HEXO) (the “Company”) is reporting its financial results for the second quarter of the 2019 fiscal year, the Company’s first full quarter following the legalization of adult-use cannabis in Canada. Total gross revenue for the quarter reached $16.2 million, an increase of 144% from the previous quarter.
HEXO recently remedied its recognition issue, uplisting to the NYSE and getting the attention of U.S. investors in cannabis companies. The Quebec-based company is a favorite in its home region within Canada, and it’s also seeking growth through its recent acquisition of peer Newstrike Brands as well as its partnership with Molson Coors to explore cannabis-infused beverages.
One area that HEXO intends to pursue further is the European market. The cannabis company has a processing plant in Greece, and it hopes to supply marijuana products to European Union jurisdictions in which they’re legal. As that market expands, it could help supplement the other revenue sources that HEXO has worked hard to cultivate, including its Hydropothecary subsidiary and its sales of sublingual THC spray.