Good Morning, Trader!
I don’t know where the markets are going today, but I can tell you I will be watching this stock very close all day today.
If we get a winner, then it’s the only stock I need to care about!
The “high concept” driving the bulls wild on today’s spotlight stock is simplicity itself.
Everyone knows that niche, craft beers are gaining huge popularity. Mexican beer is one of the hottest drinks on the planet and Drinks Americas Holdings Ltd. (DKAM) has the exclusive license to sell it!
DKAM sells brews like “Mexicali,” “Red Pig,” “Day of the Dead” and of course the legendary (or dreaded) Chili Beer.
If you’ve never tried them, I’ll lay down the details below (just promise me you’re over 21!) -- but I can’t wait to get to the DKAM chart:
From a lowly sub-penny to as high as $0.02 over the last three weeks? Yeah, DKAM is on a tear recently!
A chart like this is hard to argue with, while the momentum it reflects on DKAM’s side should give any red-blooded trader a buzz.
Look at the strength of those technical levels! MACD hanging out well above zero with no sign of dipping below signal any time soon!
RSI right where I like it: north of 50 to show DKAM price action is stronger than the broad market now, not quite at the 70 that spells “overbought.”
Besides, the big days have been heavily weighted in favor of the bulls. So far this year, DKAM has printed a buy/sell ratio above 4 to 1!
That’s FOUR TIMES as much turnover on the days when DKAM has gone up, versus only 1/4 of the action on the down days!
And don’t despair at having missed the move so far! Yesterday’s fleeting trip “all the way” up to $0.02 was my signal that the rally might have room left to run.
Previously, DKAM only made it to $0.0198, so we now have a bona fide rising top to work with too. Yes, the last resistance line has cracked!
Now granted, DKAM is barely a 2-cent stock so there’s endless space for the market to keep the party rolling -- we’re still on the ground floor here.
Kind of like demand for Mexican beer! DKAM just confessed that it’s having to expand its brewery to keep up with orders! (Read more)
What’s the big deal? First, Mexico knows beer. Think Corona, Dos Equis, world-class brands that the Americans and Belgians have paid BILLIONS to acquire. (Read more)
Second, DKAM is aggressively pushing its “craft” beers to cult status in state after state -- and so far distribution is no problem!
Third, the beer press is cooperating by giving DKAM awards, magazine covers, all kinds of brand-building and hopefully sales-boosting exposure.
What are sales like so far, anyway? We’re still waiting on the first quarterly numbers since DKAM started signing deal after deal, but my fingers are crossed.
But hey, with only 171 million dinky little DKAM shares on the market as of mid-November, it shouldn’t take much beer to move this $0.02 needle.
The USDA says Mexican craft beer is growing its sales 50% to 60% per year and maybe 440 MILLION gallons of it go to the United States. (Read more)
How much of that multi-billion-dollar market does DKAM really need to justify a killer buzz?
I think the chart tells you what the market thinks. So if you’re looking for a taste of something different this morning, treat yourself to a little DKAM!
May all your trades be green!
