Castle Brands – Sneaks out of town on Valentine’ Day

In the Grade B movies a deadbeat tells the landlady he will pay the back rent in the morning.He then goes to his room , backs his bags and sneaks out a window.

In the stock market companies that are going to give bad news generally wait for a Friday after the market closes . Their hope is that a news release at that time and day will be largely ignored and the news not widely reported or circulated.

Castle Brands ( ROX) is a liquor distributor looking to break out after years of losses and underperformance. It is on my watch list because it is an investment of Dr. Phillip Frost a billionaire investor.The stock went public at $9 and is recently below $ . 80 – a loss of more than 90 % . Any improvement that could be seen will spark investors interest in a turnaround – if the potential can be delivered. It is a stock worth watching  because the promise is that increasing sales will herald a multi-year comeback for the share valuation.

For all the shareholders and watchers the new quarterly report would – it was hoped – be the sign that new management was working .

On Friday the Company issued a quarterly update through an SEC  filing. The after hours filing was not accompanied by a company news release. That is not the way to treat long suffering shareholders or to give confidence to watchers looking for a ” good news ” story to mark an entry point.

It will be interesting to see what the market reaction will be – right now I am glad not to be holding shares.



One thought on “Castle Brands – Sneaks out of town on Valentine’ Day

  1. That would make sense if the release was bad. However, it was a great release and those people following will surely build their inventory as the charts are headed in the right direction.


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