National Beverage: Greater Fool Theory? – National Beverage Corp. (NASDAQ:FIZZ)

Please note: This article original appeared on my premium site, Market Adventures on (7/16/17).

On July 13th, National Beverage Corp. (FIZZ) randomly released its Q4 and full-year fiscal 2017 earnings results at precisely 9:34 a.m. Since the company doesn’t host analyst earnings conference calls and only two sell side firms cover the company, I suppose that releasing your earnings minutes after the opening bell and without notice is par for the course. Moreover, as National Beverage never issued a press release indicating its formal earnings date, market participants were left guessing as to the date.

Here is a snapshot and the earnings release (see link):

That said, on July 13th, FIZZ did file its annual report, which I have read. As usual, the report is extremely short in length, detail and disclosure. This is par for the course for National Beverage, though.

Here is a typical paragraph:

National Beverage is evolving to meet the healthy hydration demands of consumers. Health and wellness awareness has increased significantly, resulting in growing demand for beverages with little or no calories and wholesome ingredients. Our brands emphasize distinctly-flavored beverages in attractive packaging that appeal to multiple demographic groups. The attentive, health-conscious and discriminating consumer is ever more alert to wellness choices and better-for-you ingredients that align to this transition and strategic focus.

Source: FIZZ FY-17 10-K (pg. 2)

So I am not sure how seltzer water is a health and wellness product as it has no calories nor does it have any nutritional value. Yes, it is healthier than soda, but that doesn’t make it a great health product. There is no protein or electrolytes, like Gatorade. Lacroix is simply carbonated water with flavoring. This isn’t what Ponce de Leon had in mind when he was questing for the fountain of youth. Lacroix is simply overpriced seltzer water in fancy and glossy packaging.

As for its other “iconic brands” like…

Read the full article from the source…

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