Shares of New Age Beverages Corp (NASDAQ:NBEV) were slipping for the second day in a row today as investors awaited news from the National Association of Convenience Stores (NACS) show in Las Vegas, where the niche beverage-maker was launching a new line of cannabidiol (CBD)-infused drinks.
In what may be a "buy-the-rumor, sell-the-news" event, New Age shares were falling as the company did not report any significant sales or contracts to sell its new beverage. As of 11:28 a.m. EDT, the stock was down 18.4%.
Coming into the conference, Bloomberg had reported that the company was holding talks with retailers and taking pre-orders for the new portfolio of beverages, which won't be available on a large scale until March or April.
At the conference, New Age launched several beverages including CBD tea, CBD water, and CBD shots; however, the unveiling failed to lift the stock as shares were already up several hundred percent in the last three weeks as news broke about the company's entry into CBD beverages.
With one more day left in the conference, investors should be on the lookout for an announcement from New Age about any orders from the show. However, CBD still occupies a legal gray area in much of the country, so national retailers may be reluctant to begin selling. The passage of the Farm Bill could change that, making the drug legal, but otherwise, the hype on New Age may be fading. With the stock having quadrupled since September 14, there's plenty of room for shares to fall if investor attention moves elsewhere.