Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



National Beverage Shares Dropped: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: After putting their stock to bed at $15.12 last night, shareholders of National Beverage (Nasdaq: FIZZ  ) awoke to a nightmare this morning. In a world seemingly gone mad, their stock opened at $13 and change, and proceeded to plummet south of $13 within minutes.

So what: Exactly. So what?! Fools, you must chill. Nothing happened here -- or at least, nothing more alarming than the fact that National-B made good on its promise to pay out a $2.30 special dividend this morning. Take a $15.12 stock, subtract the $2.30 in cash it just mailed out to shareholders, and what you're left with is what investors woke up to this morning -- a stock trading at about $12.82.

Now what: So ... if nothing has changed at National-B, a Fool might be inclined to wonder why the stock has subsequently rocketed right back up to the $13 level and beyond? Are their rumors of a buyout afoot? Is PepsiCo still thirsty perhaps, even after drinking down Wimm-Bill-Dann (NYSE: WBD  ) two weeks ago?

I doubt it. Rather, my guess would be that this is a simple case of investors who overreacted on the one hand, placing short bets against the stock this morning, now realizing their error and closing out those bets. An increase in such "forced" buying would be enough to explain the stock's sudden uptick. But just like this morning's apparent sell-off, there's nothing behind this afternoon's rally.

Want to keep track of National Beverage's ups and downs? Add it to your watchlist.

Fool contributor Rich Smith does not own shares of any company named above. The Motley Fool has a disclosure policy. PepsiCo is a Motley Fool Income Investor selection. Motley Fool Options has recommended a diagonal call position on PepsiCo. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1399619, ~/Articles/ArticleHandler.aspx, 10/25/2016 6:52:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
FIZZ $50.07 Up +0.90 +1.83%
National Beverage CAPS Rating: **
WBD.DL $0.00 Down +0.00 +0.00%
Wimm-Bill-Dann Foo… CAPS Rating: **