Any thoughts on NBEV ?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
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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…