New Age Story

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NBEV -- USA Stock  

USD 2.31  0.09  3.75%

It appears New Age will continue to recover much faster as its share price surged up 2.01% today. The company current daily volatility is 4.97 percent, with a beta of 2.32 and an alpha of -0.28 over DOW. As many millenniums are trying to avoid beer and liquor, it makes sense to focus on New Age Beverages a little further and try to understand its current market patterns. We will analyze why it could be a much better year for New Age shareholders.
Published over a month ago
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Is New Age (NASDAQ:NBEV) a good short term trade as volatility rises?
New Age Beverages currently holds roughly 26.89 M in cash with (40.71 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.27.
We provide investment recommendation to complement the last-minute expert consensus on New Age Beverages. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Investing in New Age, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding New Age along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of New Age's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of New Age in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as New Age. Your research has to be compared to or analyzed against New Age's peers to derive any actionable benefits. When done correctly, New Age's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in New Age Beverages.

How important is New Age's Liquidity

New Age financial leverage refers to using borrowed capital as a funding source to finance New Age Beverages ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. New Age financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between New Age's total debt and its cash.

How New Age utilizes its cash?

To perform a cash flow analysis of New Age, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash New Age is receiving and how much cash it distributes out in a given period. The New Age cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
New Age Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. New Age reported Net Cash Flow from Operations of (34.25 Million) in 2020

New Age Correlation with Peers

Investors in New Age can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in New Age Beverages. Diversification will allow for the same portfolio return with reduced risk. The correlation table of New Age and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities New Age is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of New Age for more details

What is driving New Age Investor Appetite?

New Age appears to be risky, given 1 month investment horizon. New Age Beverages has Sharpe Ratio of 0.0509, which conveys that the firm had 0.0509% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for New Age, which you can use to evaluate future volatility of the firm. Please exercise New Age Beverages Downside Deviation of 5.41, risk adjusted performance of 0.0105, and Mean Deviation of 3.9 to check out if our risk estimates are consistent with your expectations.
CELH
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0.040.320.170.12
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0.040.410.230.16
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0.320.410.230.53
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0.170.230.230.2
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0.120.160.530.2
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our perspective of the latest New Age climb

New Age kurtosis is up to 0.0.
As of the 16th of March 2021, New Age secures the Mean Deviation of 3.9, risk adjusted performance of 0.0105, and Downside Deviation of 5.41. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of New Age Beverages, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for New Age, which can be compared to its peers in the industry. Please verify New Age Beverages jensen alpha and downside variance to decide if New Age Beverages is priced some-what accurately, providing market reflects its recent price of 3.04 per share. Given that New Age Beverages has jensen alpha of (0.28), we recommend you to check New Age's last-minute market performance to make sure the company can sustain itself at a future point.

Our Takeaway on New Age Investment

While few other entities under the beverages?non-alcoholic industry are still a bit expensive, New Age may offer a potential longer-term growth to sophisticated investors. Taking everything into account, as of the 16th of March 2021, our research shows that New Age is a rather risky investment opportunity with a low odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our up-to-date 30 days Buy-Hold-Sell recommendation on the venture is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of New Age Beverages. Please refer to our Terms of Use for any information regarding our disclosure principles.

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