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Our New Pick Is…
KonaRed Corp. (symbol: KRED)
Hello Trader,
The way Wall Street looks at KRED is about to change and it’s about to change in such a major way.
Here’s why…
KRED is seeing phenomenal growth in its core business – the sale of a variety of ready-to-drink (RTD) Cold Brew Coffee varieties.
Sales of the company’s KonaRed® line are taking off. Since launching the line in February, sales have grown from a modest 13% of total sales at the start, to reach a commanding 54% of total sales at the end of April.
Those numbers will only increase because the RTD coffee and tea market is expected to grow from $69 billion (2011 figure) to a staggering $127 billion by 2017. If Wall Street wasn’t paying attention to KRED then all that is bound to change given the very obvious growth potential of the RTD beverage sector. The profile of the industry is now mainstream and was even featured on the popular ABC program, Shark Tank.
All this means is the current price of KRED could be a bargain. How can it not be?
The play is trading with rising daily volatility and has strong upside to its key historical highs. Furthermore, and as the technicals below will show, KRED has already started its upward journey. Making a move now is nothing more than riding the spike at the earliest opportunity – a chance to maximize returns on a play that is clearly ready to redefine itself in the investment arena.
Website: https://www.konared.com/
Technicals
Chart: http://stockcharts.com/h-sc/ui?s=KRED
KRED has built up so much upward momentum that valuation has surpassed the 50 DMA. At current levels it’s a matter of time before it surpasses the 200 DMA where traders can extract up to 21% gain potential.
KRED has just seen its RSI creep into oversold bought territory and at just 57, there is a still considerable upside available before it reaches riskier levels.
KRED has received a “Buy” rating from prominent finance website, Barchart.com.
KRED recently announced surging sales growth for its line of RTD coffee brews. This is a huge catalyst in the near term.
KRED is experiencing rising daily volatility, signaling perhaps that the play is poised to break free of established resistance levels. Any break above .06 could push KRED into overdrive and a potentially huge run.
News
KRED recently reported positive growth in sales of its new line of cold brew coffees. KonaRed's President and COO, Kyle Redfield, commented, "Sales of KonaRed® ready to drink cold brew coffee have increased by triple digits each month since launch in February. Unit sales of our cold brew line increased by 157% between February and March, and this continued with a further increase of 134% between March and April. We're getting onto shelves of retailers at a fast rate and re-orders have been coming back quickly as well. This product category is gaining significant momentum."
Redfield continued, "In February, cold brew coffee sales were 13% of total sales, in March this increased to 25% of total sales, and in April we've seen cold brew coffee account for 54% of our April total sales. Based on current retail shelf placements, if monthly orders continue at a seasonally adjusted level of what we're now experiencing, we could see cold brew coffee add over 50% to our baseline revenue from 2015. Our results in quarter one will be the tail end of the re-alignment which we've been engineering since late 2015 and we expect quarter two to benefit from the growing number of independent retailers and new mass retail chain authorizations adding our cold brew coffees to new shelves and regions throughout U.S."
Ready-To-Drink Coffee & Tea Market Expected To Reach $125 Billion By 2017
RTD tea and coffee are widely gaining popularity due to fast and busy lifestyle, and as a substitute to carbonated drinks. RTD tea is especially looked by the consumers in orient as a health drink. RTD coffee is perceived as an instant energy source and it makes the consumer more alert. Wider awareness about the health benefits of drinking tea like antioxidant properties, rising population with busy lifestyles, and increase in disposable income is making consumers opt for RTD tea and coffee.
The ill effects of carbonated drinks are another factor responsible for the shift in demand towards the RTD tea and coffee products. The winning imperative of the industry is the distribution alliances which is beneficial not only in tapping the untapped market but also to increase visibility of the product. The age old habit of drinking hot tea and coffee, and higher prices of RTD tea and coffee are the restraining factors.
The global market for RTD tea and coffee in terms of revenue was estimated to be worth around $69 billion in 2011 and is expected to reach $125 billion by 2017, growing at an estimated CAGR of 10.9% from 2012 to 2017. Asia-Pacific is the largest market. The demand for RTD tea and coffee market is expected to rise in North America due to an increase in health awareness and ill effects of the carbonated drinks.
Research: http://www.otcmarkets.com/stock/KRED/quote
Three Major Catalysts
KRED is already in breakout mode, having established momentum above key RSI thresholds.
KRED is also seeing bullish sentiments from prominent finance portals such as barchart.com where it is rated as a “Buy.”
KRED is experiencing rising daily volatility and has already established breakout level volume in recent sessions
Start your research on KRED now.
Able Trader
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