New Age Beverages Corp (NASDAQ: NBEV) has a lot going on in the near term, and it may be just the time to get involved. Today, we’ll talk about:
- Why now may be the time to get involved in NBEV;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
NBEV Declines May Present An Opportunity
New Age Beverages has been an interesting stock to watch as of late. With acquisition rumors from Coca-Cola, CBD-infused drinks, and other stories driving the stock, mid-October was a great time. However, the stock has largely fallen from highs as of late and it appears that excitement is fizzling. Nonetheless, there may be a very real opportunity here.
The truth is that we’ve seen the type of gains NBEV can produce when excitement is high, and chances are that excitement will hit the stock relatively soon with multiple catalystic events on the horizons:
- KO Earnings – The rumors that led to big gains on NBEV had to do with Coca-Cola. Essentially, there’s buzz going around that KO is interested in buying the company to get its feet wet in the CBD-infused beverage space. With earnings coming from the beverage conglomerate tomorrow, we may hear more about this. In fact, subtle hints in the report may confirm or debunk the rumors.
- NBEV Earnings – New Age Beverages is expected to release its earnings report in about two weeks. This report will likely come with hints as to pre-order amounts and other information associated with the CBD-infused drinks that led to the run.
- Tilray – There’s also chatter in some of the smaller social corners of the market that Tilray is interested in making an offer to acquire NBEV. Because of the source of the chatter, I don’t believe that this is anything that will actually happen. Nonetheless, if the rumor heats up and grabs attention across the market, it could lead to a run in value, albeit unwarranted!
At the end of the day, NBEV declines may be concerning for some, but looking at the overview of the stock here, it’s clear that this could become a pretty large opportunity. With three big stories, all having the potential to lead to dramatic movement, all it takes is one hit, and we could see this stock fly!
What We’re Seeing From The Stock
New Age Beverages is on the decline today, falling off on recent excitement fuelled gains. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. Currently (12:10), NBEV is trading at $3.82 per share after a loss of $0.38 per share or 8.95% thus far today.
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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 stories surrounding the takeover chatter as well as the company’s success, or lack thereof in the CBD-infused beverages space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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