Beverage maker Splash Beverage Group (NYSEAMERICAN: SBEV) stock has recently been uplisted to the NYSE American exchange with a 1-for-3 reverse stock split on June 11, 2021, through an IPO of 3.75 million shares and warrants priced at $4 per share. The warrants are exercisable for one share of common stock at $4.60 per share with a five-year expiration. Shares collapsed from the IPO as volume is light for this under-the-radar beverage play. The Company sells beverages ranging from non-alcoholic sports drinks to alcohol products including wine, sangria, and tequila. Distribution expansion and brand awareness is the key for multiple expansion as the post-pandemic reopening gets underway with the acceleration of COVID-19 vaccinations. This is a highly speculative play only suitable for high-risk speculators seeking to get in at opportunistic pullback levels for potential multi-bagger upside potential.
About Splash Beverage Group
The Company is a micro-cap with merely eight employees. However, their portfolio of beverage brands is growing. The sports drink is Tapout drinks which are has 12 key vitamins, 68 minerals and 5 electrolytes. It is one of the iconic brands associated with the sport of mixed martial arts and one of the original brands associated with the early days. Salt Tequila is 199% blanco agave tequila with a clean and sweet taste that comes in berry, citrus and salted chocolate varieties. Copa Da Vino is a premium wine by the glass sold in the United States and sold by the portable glass. Pulpoloco Sangria is a crafted import Sangria from Spain packaged in eco-friendly catacan allowing for true flavors of Spanish sangria with extended shelf life without added preservatives. These four brands drive the portfolio. The Company did $2.417 in net revenues for the first three month in 2021 with losses of $4.39 million or (-$0.18) per-share on 24.64 million common shares (pre-IPO). The Company had $1.2 million in cash prior to its $15 million IPO uplisting. The Company recently rolled out its SALT citrus flavored tequila in Sam’s Club (NYSE: WMT) warehouses with an additional 20 stores bringing the total to 42 Sam’s Club warehouses primarily in California, Arizona, New Mexico, and Florida. The Company raised $15 million in its uplisted IPO composed of 3.75 million shares and warrants to purchase up to 3.75 million shares at the offering price of $4-per share and accompanying warrant.
China Distribution Expansion
The Company secured distribution in China through a partnership with American Software Capital (ASC) on June 7, 2021. ASC will distribute Copa Di Vino and Pulpoloco brands in addition to its TapouT and SALT naturally-flavored tequila brands out of its state-of-the-art facility and distribution networks in Greater China. China is the largest demographic of wine drinkers and alcoholic beverage consumption in the world. ASC and Splash will market to the younger demographic of Chinese with rising disposable income. The CEO of Splash, Robert Nistico stated, ”While the import and distribution of Splash’s brands address immediate demand in the China market to Western spirits and non-alcoholic beverages, and we expect a near-term contribution to revenues, we are concurrently working with ASC to establish local manufacturing and streamline operations to maximize profitability in the region”.
SBEV Price Trajectories
Using the rifle charts on the weekly and daily time frames provides a broader view of the landscape for SBEV stock. While the stock is newly minted as of June 11, 2021, on the NYSEAMEX exchange, it has a trading history under the same symbol and enables us to use the already materialized indicators to gauge price action. The weekly rifle chart has a downtrend with falling 5 and 15 period moving average (MA) resistance at $4.71. The weekly lower Bollinger Bands (BBs) are at the $2.42 Fibonacci (fib) level. The weekly market structure high (MSH) sell triggered on the breakdown under $8.25. The weekly market structure low (MSL) buy triggered above $4.05. This is a micro-cap stock with much slippage even at these levels and should only be allocated a speculative position size for highly risk tolerant investors. The daily rifle chart formed an inverse pup breakdown with the 5-period MA at $3.24 with lower BBs under the $1.95 fib. Speculators can watch for deep opportunistic pullback entry levels at the $2.42 fib, $1.95 fib, $1.62 fib, $1.26 fib, and the $0.63. Upside trajectories range from the $4.29 fib upwards towards the $7.80 fib.
Before you consider Splash Beverage Group, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Splash Beverage Group wasn't on the list.
While Splash Beverage Group currently has a "N/A" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The 5 Stocks Here
Companies Mentioned in This Article
Compare These Stocks
Add These Stocks to My Watchlist