Shares of Kona Gold Solutions Inc (OTCMKTS:KGKG) rallied by more than 50% in response to news the company is set to expand its hemp product line further. The report acted as fuel to a blockbuster run that began early in the month. Since the start of the month, the stock has rallied by more than 300% after coming under pressure in the first half of the year.
Kona Gold Price Analysis
Kona Gold Sentiments in the market have improved a great deal in recent months as investors continue to react to a string of positive developments. The signing of distribution agreements is one of the major developments that continues to underscore the company’s commitment to pursuing new sales channels.
The company has also hired a new sales executive as focus shifts to exploring new sales opportunities across the U.S, in pursuit of accelerated revenue growth. With investors, maintaining a keen interest on the underlying positive developments, the stock has since resorted to trading in a steep uptrend.
After breaching a key resistance at the $0.02 mark, the stock has gone to register a new 52 week high of $0.039. With sentiments in the overall industry looking bullish, the stock look set to continue climbing high.
The recent spike higher points to possible pullbacks from where buyers are likely to join and continue pushing the stock higher. Immediate support on pullbacks is seen at the $0.003 handle. A breach of the critical support level could leave the stock vulnerable to further declines back to the $0.02 handle.
In our view, Kona Gold Solutions looks set to finish the year on a high as underlying fundamentals continue to show signs of improvements.
About Kona Gold Solutions
Kona Gold through its subsidiaries develops hemp energy drinks as well as energy patches and hemp shampoo. Its subsidiary, HighDrate developed industry-first CBD Energy Water that is now available in four flavors.
Product Line Expansion
Renewed investor interest in Kona Gold comes on underlying fundamental turning positive and pointing to a bright future for the hemp focused beverage Company. For starters, the company is fresh from announcing the expansion of its Hemp Energy Drink product line. The company is working on two new flavors, Cherry Vanilla and Cotton Candy, slated for release before the end of November.
According to the Chief Executive Officer, Robert Clark, product line expansion is part of a plan to build market presence, while furnishing customers with a variety of product offerings.
“The new Platinum flavor is produced with natural ingredients, pure sugar cane, and is one of the best-tasting energy drinks that will be on the market. By late November the Kona Gold Hemp Energy Drink line will be offered in five amazing flavors, which is key to several large potential distributions deals the Company is currently working on,” said Mr. Clark.
Kona Gold has also sought to diversify its distribution channels by signing a string of agreements in recent weeks. The company has since entered into a distribution agreement with Liquid Culture Enterprises.
The agreement paves the way for the distribution of the company’s Hemp Energy Drinks and HighDrate CBD Energy Waters in Seven counties in South Carolina.
In addition to the Liquid Culture Enterprise Distribution Agreement, the company has also signed a distribution agreement with Southeast Beverage. Headquartered in Salisbury NC, the distributor will distribute Kona Gold products in 25 counties in North and South Carolina.
“Southeast Beverage gives Kona Gold distribution capabilities in several key Southeast Markets. As we bring on new distribution partners, I will be working hand-in-hand with them to ensure we have successful kickoffs of our brands and strong pull through in new markets,” stated Chris Salinger, V.P. of Sales of Kona Gold Solutions, Inc.
The signing of distribution agreements follows the appointment of Mr. Selinger as the new Vice president of sales. He joins the company with over 25 years’ experience and will be looked upon to build a top-tier sales team in a bid to accelerate sales growth.
While the overall bullish sentiment in the cannabis sector has had an impact on Kona Gold price spike, one cannot dispute the impact of the underlying fundamentals. Expansion of the company’s product line, as well as the signing of a string of distribution agreements, continue to strengthen investor sentiments in the stock.
That said, Kona Gold remains well positioned to finish the year on a high at the backdrop of solid fundamentals. After a recent spike higher, it might be wise to wait for further pullbacks to enter long positions.
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Disclosure: We have no position in KGKG and have not been compensated for this article.