Over the years, New Age Beverages Corp (NBEV) has emerged as a very interesting marijuana company. The Denver, Colorado-based company is involved in distributing beverages made by others. The cannabis company has grown by leaps and bounds over the past year or so.
Expanding Retail Presence
However, the company that represents this marijuana stock does not reflect the expansion that New Age has enjoyed over the same period. Over the past few weeks, the company has managed to expand its retail presence considerably and also added new products to its catalog. Moreover, it has managed to acquire another distribution network as well. Despite all that, the pot stock has continued to plunge and in the month of May alone, the New Age stock nosedived by as much as 14%. During the same period, the S&P 500 Index experienced a fall of only 1.3%.
It goes without saying that these are significant developments but the fall in share price is possibly tied to the company’s efforts to bring a CBD infused beverage into the market. Experts believe that New Age is still a risky investment and it would not change until the CBD infused beverage hits the market in a big way. In this regard, it needs to be pointed out that New Age managed to strike a deal with retail behemoth Walmart for its Marley+CBD Mellow Mood product.
Although it is a significant development, it remains to be seen whether customers actually buy it. If they don’t, Walmart is perfectly capable of refusing to retail the cannabis product any longer. Its products are also being retailed by Costco and Publix.
Expanding Company Profile
The acquisition of Brands Within Reach may have also boosted the company’s profile. However, experts still believe that it is a speculative investment at best, at this point of time. Moreover, it has not turned a profit yet, but Wall Street analysts expect New Age to be profitable by Q3 2019. The company still has to prove itself as a major operator in its segment and until that happens, the stock is unlikely to perform better. New Age is hoping that the move to sell marijuana products can prove this.