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An 'Energized' Alert For Thursday!
Tonight you've got first dibs on a new pick hitting the street!
Tonight I want to get right down to business because I'm thinking tomorrow could have one hell of a busy day in store. CUBA Beverage Company(CUBV) is in the spotlight tonight not only for what the company's been up to but because of what the technicals could be starting to show. I made it a point to tell you EXACTLY why I take things as personal as I do and my aim is not to just "bring picks" but to deliver reports on companies that could be showing HUGE potential for gains.
Low Float, Bottom Bounce, Momentum Style Pick
CUBV could have bottom bounce potential written all over it. Pull up any 30 day stock chart and you should quickly see the recent trend that has come into play after CUBV consolidated. The stock has been trending at support between 0.0012 and 0.0015 where Wednesday's closing PPS rounded out at 0.0015. Meanwhile the market itself has been quiet and in my opinion, this could be a strong mix of breakout possibilities...why?
Besides the support trend, pull up OTCMarkets and you should see that it shows a float somewhere around 29 million shares...normally this would be considered large but at 0.0015, we're literally talking less than $45,000 in dollar equivalence! This is, in my opinion, incredibly low and at sub penny levels, the volatility that can be brought by a low float, could leave a huge impact on momentum.
Think about this for a second, if CUBV jumps by 0.001 (one TENTH of a penny), we're talking a move of nearly 70%! I always talk about the power of sub pennies and when you put a low float in the mix as well, not only does it limit the actual number of shares that are tradable in the market, but it could spur an explosive breakout. Considering that this recent level of support has held for nearly 2 weeks, we could be looking at a near absolute bottom to this...just my opinion.
Energy Is On The Menu
CUBV has tapped into the growing energy beverage market. By now we've seen a rise in alternatives to products like Red Bull and Monster but CUBV has taken a different approach to the space. The company is focused on healthy and all-natural energy juice! Their Cuba Herbal Energy Juice was cited as being one of the first all-natural energy product on the market focused on health and wellness.
I don't have to tell you how big this market continues to grow, but I'll give you a small reminder because even though there are some major players in the space, a small "money grab" could mean a world of difference to a company like that of CUBV in my opinion. According to IBISWorld, this is an $8Bn industry and despite the large size, it's continuing to grow at a health rate. Annually (as of October 2015) the US energy drink production industry is realizing more than a 14% rate!
The Energy Drink Production industry has managed to achieve double-digit growth over the past five years, outperforming most other packaged beverage production industries. As disposable income continued to strengthen, operators benefited from the growing penetration of energy drinks among consumers, particularly among teenagers and young adults.
According to IBIS, over the next five years the industry is anticipated to continue growing. As industry participants continue to introduce new products and market their brands to specific consumer groups, more consumers are expected to adopt energy drinks!
As far as recognition goes, CUBV has won several awards. These include 1st Place for "Best Energy Drink in the Americas" at the 7th Annual Americas Food And Beverage Competition for it's Cuba Herbal Energy Juices!
As Their Slogan Says "No monsters, no bull, just pure healthy energy"
...And I'm hoping to see that kind of "healthy energy" translate into gain potential in the morning. With a bottom bounce chart, a super low PPS, a low float, and participation in a market slated for some serious growth over the next several years, CUBV could be right on time for a momentum run. I was serious about what I said earlier this week and I'm hoping it proves itself come tomorrow morning. You said you are still with me and in turn I am still with you!
So, keep a close eye on your inbox for more on tomorrow's sub penny pick, start your DD on CUBV, and if you choose, be ready to trade tomorrow morning at the opening bell!
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