New Age Beverages sees continued gains this week
After falling to $4.64 on December 7, the share price for New Age Beverages has continued to rise steadily all week. The company, which makes drinks infused with cannabidiol (CBD), has enjoyed a rally while many others have had to watch their prices flatline or drop. The NASDAQ-traded stock (ticker NBEV) is currently at $6.04, $0.03 higher than its previous day close.
It’s difficult to ascertain exactly why NBEV would be performing well while others aren’t seeing the same results. Almost certainly, part of the reason would be the announcement by Altria that it was purchasing a significant piece of Cronos, but if that were all it took, more companies would be seeing better results, as well. New Age announced last week that it would purchase Morinda, described as a “healthy beverage company” that serves the Asian market, which probably helped. New Age gave $85 million for the acquisition, which has already been completed.
New Age only entered the CBD market this past September, so it doesn’t have a strong footing in the industry. However, acquisitions like that of Morinda apparently are giving it a boost and giving investors a great deal of confidence. While no one is saying that now is the time to put all assets into the company’s stock, New Age is definitely an option that should be considered as an addition to the portfolio.