Shares of Kona Gold Solutions Inc (OTCMKTS: KGKG) are once again surging in response to the company positioning itself to be the fastest growing beverage company in the Hemp sector. After imploding late last year, the upside action has gained steam as the stock continues to make a run for last year highs.
KGKG Share Price Analysis
A spark in share price and market activity is in response to a number of distribution agreements the company has signed in pursuit of revenue streams. For starters, the company has inked strategic partnerships set to expand and strengthen its sales operations across the U.S.
In addition, the company has entered into distribution agreements with Three Anheuser-Busch Distributors as it seeks to strengthen its operations in Missouri. The company has also signed a distribution agreement in Atlanta Georgia.
The string of distribution deals the company has signed has continued to shore the stock’ sentiments if recent price action is anything to go by. For starters, the stock is currently trading in an uptrend, pullbacks having emerged as buy opportunities.
After a recent spike higher, the stock needs to stabilize above the $0.09 support level, to continue powering high. Above the $0.09 mark, the stock is likely to make a run for 52-week highs of $0.12.
Conversely, a violation of the $0.07 support level on sell-offs would leave the stock susceptible to further drops in continuation of the bear trend that began late last year.
As it stands, Kona Gold remains well positioned to continue climbing the ladder as the upward momentum continues to gather pace.
What does Kona Gold do?
Kona Gold processes and distributes hemp energy drinks as well as energy apparel, hemp shampoo, and hemp energy patches. It’s wholly owned subsidiary HighDrate LLC also boasts of the industry’s first CBD Energy water.
Shares of Kona Gold are gaining some steam in the market as investors react to a string of distribution agreements that the company has signed in the recent past. Massachusetts, New Jersey, and New York are some of the markets that the company has set sights on given the distribution deals in place.
A distribution deal with TJ Distribution is poised to make the company’s products available in Massachusetts as Trident Distributors LLC overseas sales operations in New Jersey. In New York Kona Gold has contracted the services of SeeBeeDee’z LLC.
The company has so far collaborated with 13 distributors as part of an effort that seeks to make the company’s products available in all the major markets across the U.S.
“We continue to sign a new distribution partner on average of one per week, and with the busy season in the beverage industry around the corner; I anticipate even more growth in the coming months. With the addition of these three distributors, Kona Gold and HighDrate continues to expand into exciting retail markets,” stated Chris Selinger, VP of Sales of Kona Gold.
In addition, the company has entered into a distribution agreement with River Eagle Distributing Inc., Bradley distributing, Inc. and bob ralph dist. Co., Inc. as it seeks to pursue sales opportunities in the Missouri area. All the three distributors have agreed on add to their portfolio, the company’s Hemp energy drinks, and HighDrate CBD Energy Waters.
Revenue Growth Prospects
Thanks to the distribution agreements, Kona Gold has continued to enjoy exceptional growth when it comes to revenue generation. The company is on course to generate revenues of between $1.5 million and $2 million for the current fiscal. The possibility of the company having a record-setting first quarter is high as revenues are poised to clock highs of $250,000.
“We have assembled a Sales team with experience and contacts in the beverage industry that are second to none. Paired with our exceptional products that resonate with our consumers, we expect our rapid growth and expansion to continue through 2019,” stated Robert Clark, CEO of Kona Gold Solutions.
Kona Gold is in a phase of robust growth, which explains the love its stock continues to receive in the market. Distribution deals should allow the company to achieve its goals on revenue growth given the expansion into key markets across the U.S.
Kona Gold is an exciting fundamental investment at current levels if its revenue growth prospects are anything to go by. The stock is likely to continue climbing the ladder, in line with the bullish momentum in the overall sector.
We will be updating our subscribers as soon as we know more. For the latest updates on KGKG, sign up below!
Disclosure: We have no position in KGKG and have not been compensated for this article.