New Age Beverages Corp (NASDAQ: NBEV) is flying early on in the trading session this morning, and for good reason. A Couple of bits of news have been hitting the wire with regard to the stock. First and foremost, the company was mentioned as a takeover target. Also, the company seems to be preparing for future products by trademarking cannabis-related brand name. Today, we’ll talk about:
- The news;
- what we’re seeing from NBEV as a result; and
- what we’ll be watching for with regard to the stock ahead.
NBEV Heads Up On Takeover Interest And Preparations For The Future
As mentioned above, New Age Beverages is having an incredibly strong start to the trading session this morning. While you won’t find any information searching through the company’s press releases, there are a couple of reasons for the gains.
According to various reports, the larger reason for the climb is associated with a potential takeover of the company. Reports suggest that Coca Cola (KO) is interested in acquiring the company. However, it’s important to keep in mind that this is nothing more than a rumor. So far, neither NBEV nor KO have mentioned anything associated with a takeover and the story is largely unconfirmed. Therefore, making a move on the news may be risky. After all, takeover chatter is one of the most common forms of market manipulation.
On another note, we found something a bit interesting when digging into NBEV. Apparently, the company is in the process of preparing for the future; a future which includes cannabis-related drinks. At the moment, the company is in the process of trademarking various brands, which seem to include cannabis-derived products. For example, one of these brands is known as CBD Tea, which suggests that the company may be using cannabidiol in future beverage offerings.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to keep tabs on the news. After all, the news moves the market. In the case of New Age Beverages, while the company hasn’t released any news of its own, reports with regard to a potential takeover and filings for future brands that seem to include cannabis derived products are exciting investors. So, it comes as no surprise to see that they are sending the stock on a run for the top in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:30), NBEV is trading at $1.94 per share after a gain of $0.35 per share or 22.01% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NBEV. In particular, we’re interested in following the story surrounding the takeover interest by Coca Cola as well as the potential launch of cannabis-related drinks by the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!