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Can Hyped Up New Age Beverages Meet Expectations?

|About: New Age Beverages Corporation (NBEV)

Analysts are expecting -$0.26 EPS for FY 2018.

Full year 2018 revenue expected at $51.7 million.

Results due out today - Friday March 29 2018.

New Age Beverages is getting a lot of chatter, sites like StockTwits and Twitter are a battle ground of bulls and bears engaged in the usual juvenile games of name calling and bravado.  "Watch and Learn" is a frequent retort.  

Thankfully results will be out in a few hours, we'll know very soon whether New Age has met, beat or missed expectations.  Yahoo Finance aggregates the estimates:  

NBEV Analyst Opinion | Analyst Estimates | New Age Beverages Corporation Stock - Yahoo Finance

I have placed my bet on the short side to have some skin in the game. I haven't sold short, instead I bought April 5th $5 puts.  Options are a good way to protect oneself against substantial losses because the downside risk is fixed, with short selling the potential losses are theoretically limitless.   

It is my belief that (NBEV) will miss on the earnings expectations and that the PPS will fall.  I am also ready to be wrong.  If NBEV meets or beats expectations, then I believe the PPS will climb substantially.  

I'm not really concerned about forecasts for 2019.  If New Age is unable to deliver on the expectations from 2018, then how can they be expected to deliver on expectations going forward.  

Even if they do miss though, experience tells me that there will still be an army of pumpers on social media sites hyping the future.  


I'm not a registered investment advisor so consider this blog posting as being for entertainment purposes only.  I wrote this article myself and received nothing in compensation, these are simply my personal and genuinely held opinions.

Good luck and God bless.  

Disclosure: I am/we are short NBEV.

Additional disclosure: The disclosed short position relates to puts, not shares borrowed and sold back into the market.