new age bevereage

Looking at New Age Beverage Corporation seems to be a Wall Street equivalent of touching a hot stove, burning yourself, then doing it again. CEO Brent Willis seems to be burning through cash to keep that stove hot as well.

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Take a look at some of the highlights of recent cash injections

  • April 10, 2018
    • Priced offering of 2.285 million shares
    • Gross proceeds of $4 million
  • June 21, 2018
    • Closes $4.75 million financing facility
  • August 13, 2018
    • Announces new $12 million line of credit
  • August 22, 2018
    • Prices offering of 8.2 million shares
    • Gross proceeds of $9.5 million

In the span of less than 6 months, New Age Beverage Corporation takes in $30 million in cash, and still needs to find more money. Not a good sign. Take into consideration that the CEO also has a historical performance metric on the low side of lackluster, and that’s a fair assessment. Losing over a $1 billion in shareholder from his 3 previous companies (COTT, ECIG, and XFTBE), and currently taking NBEV from $7 a share to $.25 a share, New Age isn’t doing too hot.

While looking at this stock, and the mountains of debt and dilution that is going on, either stay far far away from this stock, or initiate a short position.

Shorts for this one still will have some value, as $1.28 is still greater than zero, but it’s headed to zero and joining the ranks of HMNY as on of the biggest losers of the year.

New Age Beverage also just had Q2 results post on the 14th of August, and they missed earnings per share estimate by $0.07, losing $0.09 on this deal -$0.09 (just to clarify).

They also missed on revenue, with that clocking in at $13.36 million, an 11.5% loss in sales revenue year to date. Analysts estimated that revenue would come it over $15 million, but this revenue was miles away from an $80 million dollar annual run rate (from the CEO himself).

Stay away from this stock, or if you want to make money, short it if your broker can find it.