Stocks That Won’t Exist in a Decade: National Beverage (FIZZ)
The Way Out: Buyout
National Beverage Corp. (NASDAQ:FIZZ) has been one of the hottest stocks in the market in 2017. FIZZ stock — aided in part by a short squeeze and by a monster fiscal Q3 report in early March — has nearly doubled from January lows, hitting an all-time high near $88 in the process.
The driver for FIZZ is its LaCroix sparkling water brand, which is driving both huge sales growth and margin expansion. It seems apparent at this point that National Beverage is taking market share from The Coca-Cola Co (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) — particularly the struggling diet brands of those behemoths. With Dr Pepper Snapple Group Inc (NYSE:DPS) paying $1.7 billion for smaller health player Bai Brands, a $5 billion-$6 billion price tag for FIZZ — and a $100-plus/share buyout offer — seems realistic.
Add to the growth of LaCroix the fact that National Beverage CEO and majority shareholder Nick Caporella is 81 years old, and a takeout of FIZZ seems exceedingly likely over the next decade.