Castle Brands Inc (NYSEMKT: ROX)
When Castle Brands closed the day at $0.73 per share yesterday, no one knew that the stock would more than double in value in the pre-market hours toda. However, that's exactly what it has done thus far. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to ROX ahead.
What We're Seeing From ROX
As mentioned above, no one quite expected, yesterday, what we'd see in pre-market movement surrounding Castle Brands today. In fact, due to an early morning announcement, the stock climbed dramatically and more than doubled in value. Currently (8:54), ROX is trading at $1.60 per share after a gain of $0.87 per share (119.21%) thus far today.
Why The Stock Is Climbing
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on ROX. As soon as we received the alert, the CNA Finance team started digging to see exactly why the stock was making a run for the top. It didn't take long to uncover the story. It seems as though the gains are the result of a new supply agreement the company announced.
Minutes ago, Castle Brands announced a new supply agreement. However, that agreement wasn't made with just anyone. In fact, the agreement was signed with Walmart. Of course, this is overwhelmingly incredible news. After all Walmart is one of the world's largest retailers. So, the fact that ROX is now in with the company and their products will soon be on the shelves means that strong revenue and earnings are likely on their way. This is ultimately leading to excitement among investors, causing the massive gains we're seeing at the moment.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ROX. In particular, we're watching the story of the supply agreement with Walmart and interested in seeing how this pans out over the next few months. We'll continue to follow the news and bring you the updates as they break!
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