What happened to the Gage Roads Brewing Ltd share price?
At the time of writing, shares of Gage Roads Brewing Ltd [ASX:GRB] are up by 32.39%. Today it’s trading for 9.4 cents. Gage Roads Brewing Co Limited has been one of Australia’s leading craft breweries for over 14 years.
Why did Gage Roads Brewing Ltd shares do this?
Gage Roads Brewing Ltd announced its quarterly cash flow statement today. The company generated $2.1 million in net operating cash flow. Sales to independent retailers are up 183% compared to the third quarter of 2017.
What now for Gage Roads Brewing?
Gage Roads Brewing has an excellent balance sheet, with zero debt and $5.6 million in the bank. The company’s enterprise valuation (market cap less cash plus debt) stands at roughly $57 million at a 9.4 cent share price.
A closing above 10 cents per share on a monthly basis could indicate a change in trend. Significant support sits around the 7 cent region.
The company is focused on building brand awareness by selling to Optus Stadium, Fringe World, Rugby 7s and other events. If it can keep expanding its product range and building its brand in the months ahead, with a flexible balance sheet, there’s plenty of growth on offer. I’d like to see a few acquisitions to drive revenue and deliver growth for shareholders.
Resources Analyst, Money Morning
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