With beverage industry revenue multiples averaging roughly 6.5X gross sales, and as high as 9.5X, consider
In a more appropriate example, based on its ascending growth curve, SBEV's valuation is more worthy of the 9.5X revenue multiple paid when
In fact, SBEV has supplied the fuel to justify that rationale. Its guidance calls for a 34% increase to Q3 revenues to roughly
Add to that its uplist to the NYSE/American, its growing list of US and international distribution agreements, its deal to distribute all its brands in
Hyper-Growth Mode
In fact, SBEV has already entered into at least seven potentially lucrative distribution agreements for its
Betters still, last week SBEV announced its intention to implement all of its brands into its Qsplash platform, which is expected to quickly expand its brands' presence into national markets. That platform also strengthens its acquisition strategy by further facilitating SBEV's vertically integrated business model to incubate and launch new brands, test the market, and build momentum for future acquisitions. Best of all, Qsplash efficiently expedites brand development AND saves money by keeping growth accretive through a focused multichannel distribution strategy.
Thus, Qsplash shouldn't be thought of as an accounting tool. In more appropriate terms, it's a powerful driver for brand growth. And that translates to revenue growth.
So, why's the stock down? Blog chatter suggests that the selling pressure is coming from an early retail investment group taking some profits. If so, good for them; taking massive profits is not a bad strategy. However, the excellent news is that they also set the stage for new investors to reap similar rewards.
Valuation More Deserving Of
In fact, as SBEV management continues to perform near flawlessly in its mission to create shareholder value, as evidenced by its surging Q1 revenue growth, the only thing missing is the industry peer multiple. However, with SBEV releasing its first-ever quarterly and year-end guidance, that disconnect should get cured.
Remember, guidance is coming from a team that knows success, with some on the team responsible for helping take
Even better, to expedite near-term growth, SBEV has roughly
Keep in mind, too, even before its guidance expecting triple-digit-percentage revenue growth by year-end, the company has put up some extraordinary numbers.
Massive Growth In Q1
In fact, SBEV reported a massive 2058% surge in comparative Q1 revenues. That growth was led by its high-value brands Copa Di Vino wine by the glass, Pulpoloco Sangria, TapouT performance drink, and SALT Naturally Flavored Tequila. Moreover, they set the stage for further growth in Q2 with plans to leverage several high-value distribution agreements that started late in Q1 or after the start of Q2.
Better still, its distribution agreement to expand its product presence in the
In fact, with SBEV guidance coming from a team of seasoned professionals, chances are that they won't over-promise and under-deliver. Thus, many believe revenues will come in higher.
That's supported by its bullish guidance leaving out potential value from other value-enhancing initiatives. First, SBEV has compelling IP that it expects to monetize, with at least two packaging technologies that are game-changing to the beverage industry. Second, calling for a 70% increase in share price only considers its four current brands under management. That number could swell to closer to ten in the next twelve months. And, third, SBEV is well-capitalized and has a capital structure to drive growth without substantial dilution.
Better still, expect any acquisition to be immediately accretive to revenue growth. SBEV's mission is to only purchase brands with preexisting brand recognition that are innovators in its category. Thus, expect every new asset to hit the revenue-generating ground running.
Seizing Opportunity In Hot Markets
Best of all, SBEV only wants brands that can seize an opportunity in hot markets. For example, SALT's expected surge in the flavored tequila market should result from the extraordinary growth in global tequila sales.
In fact, with SALT being one of the first known naturally-infused flavored 100% agave tequilas - it can become a potentially massive asset. And using the multiples above, if SALT can hit
In fact, SBEV may be in the process of developing one of the most attractive growth stories in the beverage sector. The better news is that they are doing so with multiple brands, not just one. Hence, at current levels and with numerous shots on goals, SBEV stock may present more than an opportunity- it could offer a path toward exponential returns.
And the best news is that those returns may be destined to come sooner rather than later- making
Disclaimers:
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company
Contact Person: KL Feigeles
Email: info@hawkpointmedia.com
Phone: 3057806988
City:
State:
Country:
Website: https://www.hawkpointmedia.com
.
(C) 2021 M2 COMMUNICATIONS, source