Experienced investors know that markets can be extraordinarily inefficient when pricing stocks. Some valuations are high, some are low, and very few are just right. However, that's not all bad. In fact, investors can seize upon potentially lucrative investment opportunities by capitalizing on those inefficiencies.
In fact, its recent uplist to the NYSE-American exchange, its completed
Inclusive to distribution deals already in place with large companies like
Of course, distribution agreements are only as valuable as the brands themselves. There, the excellent news is that the SBEV product lineup combines premium quality with socially conscious manufacturing, with the result translating to a massive surge in revenues last quarter. The current quarter is expected to be even better.
Video Link: https://www.youtube.com/embed/bZPv2LZlOas
Brands Deliver 2058% Q1 Revenue Growth
In fact, SBEV entered the quarter with a massive revenue-generating tailwind at its back after posting a 2058% increase in revenues from its high-value brands Copa Di Vino wine, Pulpoloco Sangria, TapouT performance drink, and SALT Naturally Flavored Tequila. Better still, as strong as Q1 was, expectations are for Q2 and the back half of 2021 to be even better. After all, several of its distribution expansion agreements came after the first quarter's end.
That means that as attractive as the 2058% surge in revenues was on a comparative Q1 basis, the company is now better positioned to deliver multiples of that number by year-end. And with the capital to manage growth combined with members of a management team that helped take
In fact, after its recent share consolidation, even if all purchase options were exercised, there will only be about 31 million shares outstanding. Combine that low share count with plenty of cash on hand and an expert team that knows how to deliver success, there's an argument that the intrinsic value in SBEV today far exceeds its current share price. That argument may get even more potent if shares don't spike meaningfully higher if bullish Q2 expectations are met.
And keep in mind, SBEV is better positioned than ever to exceed expectations.
A Premium List Of Revenue-Generating Brands
Leading the massive growth at SBEV may come through
Still, other SBEV brands are making an impressive name for themselves and are also positioned to benefit from global distribution agreements already in place. Its Pulpoloco sangria is also likely to become a significant brand in the
Even better, don't consider SBEV as content with its four high-powered brands. The company has already made it clear that a big part of its business strategy is acquiring more brands that meet quality and eco-friendly standards.
The result could keep SBEV in hyper-growth mode.
From Zero To Billions
In fact, expecting less than exponential growth may be short-sighted. Keep in mind, the team at SBEV has proven its ability to do more than generate revenues- they build brands. Most notably, team members helped take the energy drink pioneer,
Best of all, SBEV brands are getting a head start. While
And it's not only its products earning attention. So is its manufacturing and packaging processes. Its Pulpoloco Sangria, for instance, utilizes highly efficient, eco-friendly CartoCan packaging to complement its already strong brand iconography. CartoCan is 30% more eco-friendly than aluminum or PET, uses 30% less total raw materials to create, and the raw materials that are used come entirely from renewable raw materials. Further, the packaging only uses wood fibers from forests managed in an exemplary fashion, giving CartoCan packages the exclusive right to bear the
And with consumers focusing on both brand quality and how products are packaged, it likely contributed toward the 71% YoY increase in Pulpoloco sales. Better still, it's a packaging technology that SBEV may be able to leverage. And if so, expect it to accelerate the growth of other company brands as well.
Bullish Expectations In 2H 2021
Q1 delivered exponential growth. And Q2 is expected to be even better. But going forward, investors can expect SBEV to do what it does best- execute on its initiatives. And with a history of taking brands from zero to billions, there's an excellent chance that they can deliver similar results from several of its brands. Keep in mind, its brands are well-known and available in massive global markets already. Thus, that expectation is far from wishful thinking.
In fact, while growth on a comparative basis is impressive, the point that stands out should be that management knows how to create value. And agreements made during Q1 and Q2 indeed position SBEV to prove that point. Better still, beyond them having the impact on generating another set of record-setting numbers, those deals should add to the massive amount of momentum already in place.
Thus, as noted, the work needed to find value in SBEV is already in the public domain. And for investors, having the ability to appraise the untapped value and act upon the disconnect can be the defining factor for successful trading. Speculation is fine, and it makes markets. However, measured speculation is a better long-term strategy.
If investing in well-managed companies with 2058% revenue growth is an already attractive proposition, SBEV fits the bill. However, for those that like to take things a few steps further, SBEV also offers a portfolio of excellent products, has substantial active international distribution agreements, a clean capital structure, and plenty of cash on hand. Thus, the combination of all could take
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: editorial@hawkpointmedia.com
City:
State:
Country:
Website: https://www.greenlightstocks.com
.
(C) 2021 M2 COMMUNICATIONS, source