Checkout Penny Stock Research for free Articles! http://www.pennystockresearch.com With the growing market for premium alcohol, this small beverage company is worth taking a look at. $ROX #pennystocks #hotpennystocks #pennystocktips

1. Penny Stock Research
Is This Beverage
Company The Right
Penny Stock To Buy?

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4. Hi, My name is Aaron and I‘m with Penny
Stock Research, today were reviewing our
recently published article…

5. Is This Beverage Company The Right
Penny Stock To Buy?

6. Picking the right penny stock to buy can
be a tough decision. After all, penny
stocks are priced so low for a reason.
The key is to determine if the company is
just cheap because it’s new or

7. developmental… and not because of
some major flaw. When it comes to
picking a good penny stock, it often
makes a lot of sense to look at the
industry itself.

8. A rapidly growing industry can do
wonders for just about any company in it.
And, if you can combine a good company
with a growing industry, well let’s just
say it’s a very good mix of factors.

9. That’s why I really like beverage
company Castle Brands $ROX. Not only
is the company impressively growing
revenues, but the industry itself is also
quickly gaining popularity.

10. More specifically, ROX develops and
sells alcoholic beverages worldwide.
The company’s products include rum,
whiskey, ginger beer, vodka, and others.

11. ROX’s biggest sales come from bourbon,
Irish whiskey, rum, and ginger beer.
Here’s a look at what $ROX has done
over the last year:

13. ROX was trading in tight range until the
August stock market selloff. Since then,
the share price has recovered and is now
trading above the 50-day moving
average. The stock is still about 40%
from the 52-week high.

14. So why is ROX the right penny stock to
buy?

15. As I said earlier, ROX has the advantage
of being a strong company in a growing
industry. From a company-specific
perspective, Castle has the fastest
growing small-batch bourbon in the US.

16. They also have the largest selling
premium ginger beer in the US. Plus,
ROX’s Irish whiskeys are growing rapidly.
From an industry perspective, small-
batch and small label alcohol sales are
exploding in the US.

17. All you have to do is look at the alcohol
shelf in any grocery store and you can
see just how many brands are out
there… and how many labels are from
some small brewery or distillery.

18. Let’s look at some company specifics.

19. First off, in 2013 ROX had revenues of
$41.4 million. In fiscal 2015, that number
grew to $75.5 million. That’s an
impressive 39% increase.

20. Basically, even though revenue grew
rapidly, costs remained controlled.
That’s why profits rose at a faster rate
than revenues.

21. What’s more, in the first quarter of fiscal
2016, revenues increased 38% year over
year. More importantly, EBITDA
improved to $0.6 million from a loss a
year ago.

22. Growth was driven by a 106% increase in
whiskey sales, 12% increase in rum
sales, and 40% rise in ginger beer sales.
And that’s not all…

23. ROX management has said for public
drink companies, enterprise value to
annual revenue ratios usually are about
5-6x. At the current price, ROX is trading
at just 3.3x, well below the typical floor
for this metric.

24. So to summarize, we have a rapidly
growing industry with a company seeing
its own amazing growth. And, that
company is trading well below the
valuation comparables in its industry.
Sounds like a great opportunity to me!

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