In the last few years, everyone and their mother started drinking La Croix. The popular sparkling brand is sodium-free, sweetener-free, and calorie-free, making it an appealing alternative to the high fructose corn syrup-laden soft drinks people are slowly moving away from.
Since La Croix is better for you than sodas, cheaper to produce, and in high demand, it’s also been an appealing stock pick for some people. National Beverage Corp., the Fort Lauderdale-based owner, manufacturer, and distributor of La Croix, saw a surge in their stock price within the last year, reaching a high of $62.81 per share in July.
The company’s growth on the stock market might soon be undone, however, thanks to a single investment firm with a strange ulterior motive. While it doesn’t mean the end of that delicious La Croix, it could land the company in some serious hot water.
National Beverage makes La Croix. It’s a popular, calorie-free alternative to sodas and other, more expensive carbonated waters like Perrier.
The StockTwits fridge is full of the grapefruit variety. It’s absolutely delicious!
In the last few years, demand for La Croix has sharply increased, and they’ve become a recognizable national brand.
Other than Faygo — a soft drink unironically enjoyed by Insane Clown Posse fans (we kid you not), La Croix is National Beverage’s most popular brand.
Yesterday, however, Glaucus Research Group) an investment firm) made several negative claims against National Beverage.
They said that National Beverage should be looked into by the government for deceptive accounting and business practices, which could possibly inflate their stock prices.
This announcement sent National Beverage’s stock plummeting, losing as much as 13% of its value during the trading day.
Due to the negative news, demand and faith in the stock sharply decreased in one day, with many investors not wanting to take part in the company thanks to these claims.
National Beverage responded to the claims, saying they were completely false. They also said that Glaucus had a lot to gain by making the claims and decreasing the value of the stock.
Glaucus is known for shorting stocks, which means betting against publicly traded companies. They’re currently betting against National Beverage. If National Beverage decreases in value to a certain point, Glaucus stands to gain millions of dollars. National Beverage and other analysts are assuming that Glaucus made these claims to artificially (and potentially inaccurately) decrease the stock’s price on purpose.
Which company is actually telling the truth? Is La Croix actually misstating their financial records and illegally inflating their stock price? Or is Glaucus spreading misinformation about National Beverage just to succeed on their bet against them? Only time will tell.
Share this story with your friends who love La Croix. They better start stocking up while they can!