Why Gage Roads Brewing Share Price Jumped Higher Today

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.

Free Report: Discover four red hot ASX profit plays for 2018. Read Now.

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.

Jason Stevenson,
Resources Analyst, Money Morning

PS: Aussie finance expert reveals four Aussie stocks he believes could be top performers in 2018. Get your free report now.

Jason Stevenson is Money Morning’s resource analyst. He believes the best way to make money lies in the resources sector. He says, despite the current environment, there’s always a good resources stock trading under the radar. Jason originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Now he brings that expertise to Money Morning, providing readers with his take on the Aussie resource sector, geopolitics and macro events. Whether its oil and gas, gold or lithium, you’re guaranteed an in-depth analysis of the week’s most important topic. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia