Kona Gold Solutions Inc (OTCMKTS:KGKG) has lived up to expectations and in the process generated significant returns to investors who took time to read our previous update. The stock has taken a flight in recent weeks after a slow start to the year.
Kona Gold Price Analysis
The stock is already up by more than 600%, from our previous update, and continues to exceed expectations on improving fundamentals. Kona Gold is flirting with record highs on market sentiments inching high on renewed investor interest in the stock.
A 225% increase in revenues is one of the catalysts strengthening investor confidence in the stock. In addition, the company has achieved a significant milestone in expanding its footprint, pointing to further revenue growth going forward.
It thus does not come as a surprise that the stock has skyrocketed at the back of high turnover in traded shares. Kona Gold is currently trading in a steep uptrend with pullbacks acting as buy opportunities from where new buyers have come in and continued to push the stock higher.
Given that the stock is currently trading at record highs of $0.08 a share, it might be wise to wait for pullbacks before entering long positions. Pullbacks should find support at the $0.06 level. A breach of the critical support level could open the door for the stock to plummet to the $0.04 level seen as the next substantial support level.
Kona Gold remains well positioned to continue climbing high given the underlying solid fundamentals. Strengthening investor confidence and the strength of the upward momentum, in our view, suggest further movements on the upside especially on pullbacks.
What Does Kona Gold Do?
Kona Gold is a developer of premium hemp infused energy drinks. The company also boasts of the industry’s first CBD Energy Water that comes in four flavors. The company also engages in hemp apparel, hemp shampoo development as well as hydroponics activities.
Q4 Revenue Growth Factor
Kona Gold has not taken flight on speculation or by coincidence. The upward momentum comes on the company forecasting record fourth quarter of sales. The forecast comes on the company recording a 225% increase in month over month revenue. The company says it recorded its strongest month to date of sales in October as revenue came in at $32,000.
The company attributes the robust growth to the signing of distribution partners as well as strong demand for Kona Gold Hemp Energy Drinks. HighDrate CBD Energy Waters also continue to elicit strong interest in the market
An 87% increase in sales at Amazon.com underlines the strong demand that the company’s products continue to elicit. Kona Gold expects revenue for Q4 to total $153,000, which could lead to a gross profit of $56,000.
According to the Chief Executive Officer, Robert Clark the strong sales growth is because of an increase in online sales and large orders from distribution partners.
“We will continue to see an explosion in growth as the company is working to close deals with several very large distribution partners and grocery chains. This is an exciting time to be in the hemp and CBD industry, and we are positioning the Company with the right products and the right personnel to be a leader in the market. Our primary goal to our shareholders is to increase revenue and be profitable in Q4 of 2018,” said Mr. Clark.
In pursuit of more distribution partnership to accelerate sales growth, Kona Gold has announced a new distribution partner in the name of Ringos Wholesale. Based in Lexington South Carolina, The distributor will distribute Kona Gold line of Hemp Energy Drinks and HighDrate CBD Energy Waters to key markets in the state.
In addition, Kona Gold has confirmed it is developing a new flavor as it seeks to extend its Hemp Energy Drink Product Line. The two new flavors under development should be available for commercialization late November.
“Expanding our product line to include more flavors is crucial to building our market presence and will provide a variety of product offerings to our consumers,” said Mr. Clark.
Just as was the case in our previous update, Kona Gold remains well positioned to finish the year on a high. A recent spike higher in our view presents yet another buy opportunity on the stock pulling down on investors taking profit.
Kona Gold Fundamentals are improving by the day thus supporting further movements on the upside. For early movers, it might be wise to wait for a pullback before entering long positions.
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Disclosure: We have no position in KGKG an have not been compensated for this article.