Investors appear to be losing faith in Gage Roads Brewing Co Limited (ASX: GRB) with the small-cap brewing stock falling another 8.99% today, taking its shares to a new two-year low at just 8.1 cents apiece.
As can be seen in the chart below, it's been a rough ride for Gage's shareholders with their stock having essentially halved in price over the last month. A 52-week chart of the stock's performance would look even more daunting given that it has dropped 69% since peaking at 26 cents in February last year.
Source: Google Finance
The company's latest setback came after it delivered a disappointing update for its first-half operations. Sales were down by 8% over the half and while that can partially be attributed to the company's new warehousing strategy (causing a once-off reduction in sales), the company also cited a "category-wide softening of the beer market", as well as its inability to stock store shelves on time for the peak sales period.
Zooming in even further, sales of its proprietary products through its major customer Woolworths Limited (ASX: WOW) declined by 19% which is another worrying sign for investors. While Gage Roads maintains decent growth opportunities, it also remains a risky investment prospect and one that investors might be better off avoiding, for now.
