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NBEV - retail loves it despite the fact it's a horrible company with a long term bearish setup
On 18 January 2019 I posted a bearish count in my Twitter account. Immediately bulls attacked me arguing that I am an idiot who only knows three letters of the alphabet. Those letters are A, B and C. They said because they knew words like “wave” and number “3” they were the true analysts on the block. They said it was obvious NBEV was going to new all time highs.
NBEV - weekly chart updated on 18 January 2019
Now lets look at the updated chart below….
There are several takeaways from this story:
(1) Always check fundamentals of a company you buy. I know you love that story about immense perspective of marijuana-infused drinks produced by that company. But if you look at numbers you will see that Mr.Market has priced in that brilliant opportunity. Specifically it is traded at Equity Value equal to 7.4 annual revenues. And the company loses 28 cents on each dollar of revenue!!! I mean the Gross Margin is minus 28%!!!
( 2 ) Never offend other people if you do not like what they say. Everyone has its own opinion. You may not respect it but you can and should keep it from being publicly exposed.
( 3 ) After all knowing only three letters A, B and C turned out to be a great advantage in the market.
( 4 ) Harmonic Elliott Wave methodology rocks!
P.S. Do Not Be a Menace to CastAwayTrader while Drinking Your Juice in the Hood
NBEV - weekly chart updated on 15 March 2019
