24May10:40 amEST

Cold Drinks for the Hot Summer

With a long, hot summer approaching, what better time than now to hone in on up-and-coming beverage plays, especially with the potential for a few more M&A deals? Of course, beyond mere conjecture we want to have the technicals working in our favor. 

Last week, we profiled Celsius Holdings (CELH) both here and as a play inside Market Chess Subscription Services as having a superior chart compared to most other growth or small cap names at the moment. Since then, CELH has fair quite well, up around 10%. 

Beyond Celsius, though, and especially if the smaller cap beverage theme has legs, let us also consider LaCroix beverage owner, FIZZ. A long-rumored buyout target, FIZZ (below on daily timeframe) is not quite as strong as CELH overall, but it is bouncing nicely off its 200-day moving average. 

FIZZ is also rather heavily-shorted play, and was in with the meme stock squeezes like AMC GME over the winter. The reason why that matters is due to the recent swoon and volatility in crypto--Should the crypto trader move back into equities, it is likely they return to some old sweethearts, namely heavily-shorted plays they can try to squeeze. And FIZZ may very well fit the bill. 

Either way, FIZZ is having a fine morning so far. NBEV and DTEA are two other highly speculative beverage plays to have on watch, too. 

Weekend Overview and Analysi... Stock Market Recap 05/24/21 ...


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