New Age Beverages Corp (NASDAQ: NBEV) is in dire need of new catalysts if it is to power through a tight trading range. After an excellent start to the year, the stock has once again come down crumbling, on the upward momentum losing steam. Upside action remains under pressure as the stock continues to trade in a tight trading range.
NBEV Catalysts And Share Price Analysis
The confirmation that the company has completed a merger with Morinda Holdings triggered a rally that saw the stock bottom out after succumbing to short selling pressure. The upward momentum did receive a boost on the company inking deal for the development and distribution of Marley-branded CBD-infused beverages.
Renewed investor interest also followed the expansion of the company’s non-collagen beverage product-line following record sales. The company has also moved to enhance the level of expertise in its board of directors with the appointment of Amy Kuzdowicz.
Recent price action activity does not paint a clear picture of the company’s long-term prospects in response to the string of positive developments. The stock has tumbled from highs of $7.20 and is currently flirting with the $5.20 level.
The $4.80 mark is a critical technical and support level that New Age Beverages needs to stay above, if it is to have any chance of bouncing back. A breach of the support level would leave the stock susceptible to further drops on short sellers swinging into action.
About New Age Beverages Corp
New Age Beverages is an organic and natural beverage company seeking to become a leading healthy beverage and lifestyle company. Its pipeline of products is made up of ready to drink tea, RTD coffee, Kombucha as well as energy drinks.
What Next For New Age Beverages Corp
New Age Brands has taken a significant beating ever since it rose to highs of $7.20. While the sell-off is a point of concern, one cannot dispute the fact that underlying fundamentals are as strong as they could be.
Expansion of the Noni+Collagen product line following the achievement of revenues of over $4 million, attests to a company in a phase of robust growth. The fact that the sales came on initial test markets of Japan, Taiwan and U.S affirm what investors should expect on the company embarking on a full-scale commercialization drive.
Noni+Collagen is a healthy skin supplement positioned as a once-daily use.
”We are so incredibly pleased with the early success of TeMana Noni+Collagen. We knew this would be a product our customers and partners would love, and we are thrilled to see it gain immediate momentum. We are the first and only company in the world to combine pure hydrolyzed collagen with authentic Tahitian Noni Juice,” said Shon Whitney, Morinda’s Vice President of Sales and Marketing.
Marley Branded Products
In addition to the Collagen product gaining traction, New Age Beverage Corporation is also in the process of strengthening its product pipeline. The company has since inked an agreement that paves the way for it to develop and distribute Marley-branded cannabis-infused beverages.
Marley+CBD Mellow Mood will be the first product to roll out under the Marley brand name. Initial market rollout will be in Colorado, Oregon, and Washington. However, there are plans to make the product available in other markets in pursuit of additional sales.
“New Age has developed a supply chain structure to meet what it forecasts to be a significant demand in 2019. New Age is implementing a brand awareness and in-store marketing plan beginning in the 2nd quarter with significant social, digital, and community building campaigns supporting the launch at retail,” New Age in a statement.
New Age Brands has tremendous potential to become a leading healthy beverage company on the closing of a merger deal with Morinda Holdings. The merger resulted in a combined company with $300 million in net revenue and $20 million in adjusted EBITDA.
The company boasts a diverse portfolio of healthy beverages supported by a multi-channel distribution and retail network. With that in mind, the company should continue to register robust revenue growth as it continues to expand into new markets.
The stock’s sentiments should inch higher on investors taking note of the company’s growth metrics. That said the stock is a potential bounce-back play, especially after the recent pullback.
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Disclosure: We have no position in NBEV and have not been compensated for this article.