Australian brewer Gage Roads Brewing Co Limited (ASX: GRB) has seen its share price decline even further today, dropping 4.3% to an equal 52-week low at just 4.5 cents.
The stock has been a major disappointment for investors, falling 73% over the last 12 months and 84% since peaking at 29 cents in October 2013. That compares to a 3% gain for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) in the same time.
Most recently, it updated the market on its third-quarter operations and confirmed that it still expects total volumes to be down 15-20% for the full-year. It also said that total carton and keg sales were down 21% over the nine-month period, with corresponding revenues down 18%.
Although Gage Roads is engaged in an organisation-wide cost review to improve overall profit margins, it seems investors are more focused on the headwinds facing the business. To begin with, Woolworths Limited (ASX: WOW), which is a major customer of Gage Roads, has been actively reducing its inventories as part of its working capital strategy and is undertaking new initiatives to improve group profitability. This suggests there could be even more pain for Gage Roads' sales.
Although the stock is trading at a massive discount to its 52-week high price, Gage Roads remains a risky investment prospect which, in my opinion, would be best avoided. Luckily, there are a number of other great small-cap stocks that are presenting as far greater buys right now.