New Age Beverages (NBEV) hit lows below $5 as the market has clearly lost confidence in the company entering the CBD space before the general market. The company is entering a new age with the closing of the Morinda deal and a level of liquidity that would’ve help prevent the 2018 inventory issues. Despite a lot of known concerns, New Age is a play on a market shift to wellness and CBD-infused drinks that doesn’t necessarily need success in order for the stock to rally.
The beverage company struggled mightily in 2018 due to proclaimed liquidity issues. The company claims a $12 to $14 million revenue hit from not having the cash to purchase the necessary inventory due to the failed financing at the start of last year.
New Age missed Q4 numbers again after missing numbers all year. Some of the revenue misses are very large for a company only generating $10-$15 million in quarterly revenues. xxx.