Castle Brands shares dipped 14.3% lower in early trading before rebounding somewhat ahead of midday. The big percentage move only amounted to 6 cents, however, as the stock traded between 20 cents and 74 cents in the last 52 weeks.
Just 90 minutes into trading Castle Brands shares were lower by 9.5%, to 38 cents, with more than 50,000 shares in play, compared with their trailing 30-day average volume of 66,000.
The distributor of Gosling's Rum, Jefferson's bourbons and Boru Vodka booked fiscal 2011 first quarter losses of $1.7 million, or 2 cents loss per share, compared with year-earlier losses of $559,000, or a penny loss per share.The New York City-based company grew revenue by 4.4% to $6.1 million in the three months ended June 30, and said it will continue to focus on its more profitable brands, namely Gosling's and Jefferson's, to drive future revenue. Selling expenses were lower in the quarter, and the steeper losses were attributed to less favorable foreign exchange gains compared with the first quarter last year. Total case sales decreased by 4.6% in Castle Brands' first quarter to 58,810, including a 4.3% decline in the U.S. and 6% in international markets. Despite its weaker performance, management remained optimistic, touting the firm's repurchase of 3.8 million shares in the recent quarter and the launch of a 2.5 million share stock repurchase program. Elsewhere in the micro-cap alcohol sector, shares of Drinks Americas Holdings (DKAM), which distributes Trump brand vodkas, fell 5.7% to half a penny. Willamette Valley Vineyards (WVVI), seller of premium wine varietals, gained 1.4% to $3.55. American depositary receipts of sector behemoth Diageo (DEO), which peddles well-known alcohol brands like Smirnoff, Johnnie Walker and Captain Morgan, gained 0.4% to $69.42.
|Castle Brands' Stock Rating Report (ROX) Rating and Financial Analysis|
>>See our new stock quote page. Follow Miriam Marcus Reimer on Twitter and become a fan of TheStreet on Facebook. Get more stock ideas and investing advice on our sister site, Stockpickr.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV