Any thoughts on NBEV ?
by lumpified | October 3, 2016 5:15 am
For anyone unfamiliar, it’s a functional beverage company which used to be the microbrewery ABRW
Basically consists of ”Bucha” kombucha plus other brands from a recent merger/acquisition: Xing tea etc
Has a big cheese, Brent Willis, formerly of Coca-Cola and IN-BEV, in charge at present, and seems to be doing well.
It represents a disproportionately large part of my portfolio at present. I got in at about 45 cents, have nibbled since, and it’s now oscillating around 1.50.
So, I’m fishing for any knowledge or opinions. If I’ve joined a large community of well-informed investors, may as well pick your brains, no?
Many thanks,
Ian
Source URL: https://www.stockgumshoe.com/2016/10/microblog-any-thoughts-on-nbev/
This looks like a good one considering management’s experience at some of the major brands. I would look deeper into financials. Maybe they will improve with the acquisition, but the historically negative operating cash flow is not a good thing.
Thank you! I’m no expert, but I think the financials are a bit weird because they basically bought the kombucha brand, sold the brewery side, and then made another acquisition, all within a few months. Hoping to see a clearer picture from Q3 …
Just to add a little more, for anyone interested, along the lines of the “Why I like this stock” intro encouraged in the Biotech sections…
I like this stock ($NBEV) because
1) I was briefly the English teacher of a very senior executive of a major major drinks company here in Barcelona, and we used some $NBEV press releases and conference calls as teaching materials. He confirmed that Brent Willis was known to him and was a useful chap. Plus, he said that the shelf life of “Bucha” (much longer than kombucha competitors) was a vital factor for a functional beverage. (Though to be fair he did have some doubts about their manufacturing and distribution set-up)
2) The boss of the Xing Tea company they just acquired, Scott LeBon, took ALL his remuneration in the form of shares of the new company. I can’t help but think that’s a hugely positive sign. He spent 15-20 years building his company, and to get nothing for it but shares has to show pretty solid confidence..
I’m aware that a lot of internet posters are sceptical of Brent Willis, largely, I think, due to their having lost money on ECIG. They also point to his being fired from Cott. In the second case, my industry source says that what he did at Cott basically saved the firm, but was too abrupt for the board to stomach at the time.
That’s all I know. Hope it’s of interest..
Ian
If the link works, this is the latest report…
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=11689558
And here the conference call transcript. Up to 1.99 at close. Long $NBEV
http://www.mybucha.com/wp-content/uploads/2016/11/nBev-Conference-Call-Script-Final-Amended-11-15-16.pdf
Seems to have settled around $2.70 for the moment. I sold 20% to fund further biotech plans, and I’m keeping the rest. I discovered from the transcript that the new CFO was also at the Xing Tea company and has also accepted 100% stock in the new company as his remuneration. I like that.
Long $NBEV
$NBEV np – Congratulations Ian and longs. Best2You ~ Ben
$NBEV now up to about $5. I’m conflicted. I keep selling to put money into Biotechs that I think have potentially much faster growth. Consoling myself with the plan of getting back into $NBEV once, for example, $PTN has done its thing… I can $NBEV on a steady upward trajectory for a while yet…
$NBEV np – guess the ol’d saying ‘one in the hand is better than 4 in the bush applies’ 🙂 having similar thoughts myself….
$NBEV Latest update, for anyone still reading…
Having been as high as $6.75 in the past few weeks, this stock has been slipping steadily, and is on sale especially today, down to $4.20.
I’m planning to jump in with both feet if it’s still this way when I have some funds clear on Weds, as the next earnings will be the first to include revenue from any of the large recent acquisitions, and should be a decent catalyst.
There is the possibility of further dilution, as the CEO is big on acquisitions, but if they got any sense they will wait until it’s nearly double what it is now.
Additionally, options became available today. The bids and asks don’t make much sense yet, but I’m gonna be keeping an eye out…
Not sure if anyone else is still following here, but regardless, I’d like to mention that NBEV seems especially cheap to me at the moment.
Since the last earnings it has slid from a high of around $7 right down to $2.50 ish, and the fundamental story, if anything, has improved.
They´ve recently signed two major distribution deals, the revenues from the Marley and Coco Libre acquisitions should start to feature in the earnings from now on, and honestly, I reckon it should be in the $10-12 range.
Next earnings should be around Nov 11th. I´ve been adding gently, and also picked up a few March 18 $2.5 calls at 60 cents. Two earnings before then…
$nbev Insiders ownership from Form 4’s http://newagebev.com/?page_id=21 &
https://www.nasdaq.com/symbol/nbev/insider-trades
$NBEV np yet > #ThankYOU Finn and Lumpified for the thread 🙂 :
$NBEV served investors with solid growth numbers: net revenue, gross margin and adjusted EBITDA all up significantly y/y
Let it flow $NBEV
https://twitter.com/JuhoJarvela/status/986551942099894273 #Best2ALL!
20180418
$NBEV Long @ 2.15USD 20180418 7:01 CDT
Good luck! I’m ow NBEV September $2.50 calls.. Got at least one, maybe two more earnings before then (they tend to come late…)
I have some doubts that stopped me averaging down even more lately. Some shareholders seem convinced that “dark pool” operators have been conspiring to keep the sp low. And they seem a bit peeved about possible mishandling of recent financing too.
But as I understand it, unplanned financing had to happen to keep up with the supply costs of increased sales… and that has to be good….no? We’ll see!
$NBEV wow > Form 4 for Timothy Hass; 100,000 shares acquired:
http://archive.fast-edgar.com//20180426/AQAO522CZ22222ZF222F2WZFC39HZS22Z2A2/ #Best2ALL!
$NBEV added at $1.78 this a.m. #Best2ALL!
Mentioned as a long idea by Antonio Costa on twitter today. May help!