Newton Golf Stock Soars As Q4 Net Sales Explode Over 800%: Retail Investors See More Upside To Rally
The penny stock surged over 40% on Monday but remains about 80% below its level at the start of the year.
FollowShares of penny stock Newton Golf Co (NWTG) surged over 40% on Monday, after the company reported a year-over-year increase of 817% in its quarterly net sales.
The golf equipment retailer said net sales in the fourth quarter rose to $1.07 billion from $117 million a year ago, driven by international expansion and new product launches.
Gross Margin expanded to 73% from 36% due to enhanced manufacturing efficiencies and an improved product mix.
The company said it signed deals to secure "distribution in 50 of Japan's largest golf retail locations", and launched new and improved golf shafts and putters.
However, net loss increased 297% to $7.30 billion.
Newton Golf has $7.65 million cash in the bank, which can support operations for about 14 months, and the company continues to evaluate additional financing opportunities.
Earlier in March, the company announced its name change from Sacks Parente Golf, Inc., and said its board had approved a 1-for-30 reverse stock split.
The split shares began trading under the new ticker symbol "NWTG" on Mar. 17.
On Stocktwits, retail sentiment jumped to 'extremely bullish' from 'bullish' a day ago, and the message volume was 'extremely high'.
NWTG sentiment and message volume as of March 31 | Source: Stocktwits
A user said they were pleased after testing Newton's products.
Another user said that while investors will cash in on the gains on Tuesday, holding the stock longer could have "moon capabilities".
NWTG shares are down 83.4% year to date.
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