Cuba Beverage Company (OTC: CUBV) took a beating in today’s trading, dropping nearly 60% of its value after a horrendous opening. Cuba Beverage began the day at $0.096 before dropping sharply in the first hour of trading to $0.05. The stock never rebounded, but dipped even further, closing the day at $0.04 on a trading volume of nearly 4.4 million shares.
Did Fidel Castro make an inflammatory speech this morning that would have caused traders to hate all things about the Caribbean island including a San Diego, California, beverage company that just happens to share the same name? If so, the upside will hopefully include the shutting down of Cuba Gooding Jr.’s participation in additional installments of “Snow Dogs.”
Perhaps it is just the simple fact that the American market for energy drinks has no room for an all-natural energy drink in spite of the fact that this market has an estimated $17 billion in annual sales. Perhaps it is America’s love for methamphetamines. If not through personal use, through the knowledge gleaned from “Breaking Bad” that energy is not all-natural like Cuba’s Herbal Energy Juice, which contains no caffeine, no taurine, no high fructose corn syrups and/or artificial sugars, no preservatives and no artificial ingredients. That is not how Bryan Cranston and Walter White do it.
There are, of course, other possibilities. Perhaps America just does not like Lawrence Twombly, who was introduced to investors as the company’s next Regional Sales Manager yesterday. It is possible that his over 30 years of experience is off-putting and, well, pretentious.
“We are excited to have a seasoned veteran become part of the Cuba Management team. I believe his extensive network in the beverage industry will be a huge asset for the Company as we join together to develop a sales network and build a strong brand, both regionally and nationally,” said Alex Procopio, Cuba Beverage CEO.
Perhaps investors were crushed today when Cuba Beverages announced yesterday that it had completed its production run of 27,000 cases that the company announced it would begin on June 29, 2012.
“Cuba Beverage is pleased to have completed its first production run of 2012. Obviously, we are excited to be able to re-launch our three-flavored product line and even more pleased to be working with Krier, a customer service orientated packager of assorted beverages whose commitment to quality production makes them an invaluable service provider for the Company. We are eager to get product to our distributors so that we may begin to recognize sales and reclaim the traction we had previously with respect to demand,” said Alex Procopio, Cuba Beverage CEO.
Some people just do not like companies that do not procrastinate, or for that matter, pomegranates, which is one of the completed flavors, along with Wild Berry and Passion Fruit Orange.
Lastly, perhaps it was the positive report offered by Goldman Small Cap Research, where they said, among other things, “In our view, Cuba Beverage has significant advantages over many of the leading energy drink brands. Cuba produces a low calorie product that is all-natural, with no caffeine, high fructose syrups, or taurine and a lower than average price point for consumers. As it leverages its existing popularity and social media cult status, its products could become a huge hit for health-conscious consumers. Plus, with high its margins, the Company is likely to generate meaningful profitability as it achieves its sales goals.”
Perhaps America just woke up on the wrong side of the bed today and knows it prefers Red Bull to some highfalutin, all-natural and cheaper alternative. Given the wealth of positives issued this week by Cuba, a rebound seems rational. That is not to say likely, but you never know.