NewAge Inc (fka NBEVQ) (NBEVQ)

[treit2002]

And they guided EBITDA 0f $15M in 2019, backloaded in the second half.

I think that the current headwinds are of a temporary nature; therefore, overdone from a risk reward perspective. These headwinds are the likely delay of FDA CBD approval, at least compared to perceptions a week ago, and uncertainty for Morinda in China. But CBD beverages, at least in the US, were not part of guidance, and they did announce $600K of noni + collagen sales in three days in China, so that headwind is at least mitigated, maybe over.

Their Q3 guidance will be very telling. I think they are trying to under promise and over deliver -- versus a history of the opposite. Unfortunately, the $320M may be difficult, unless national distribution (Walmart. 7- Eleven, Hudson, others they said were "big" and would be announced shortly after the last conference call) really show up in the top lines in the second half.

On the positive side, the latest acquisition should add $10M +/- in revenue in the second half, depending on when it closes. And it will add distribution channels to their "omni-channel plan, presumably adding revenue synergy. Also, CBD products can likely begin sales in Japan in the not too distant future; likewise, some states are ahead of the FDA, including New York.