Simple- great products that's fact never changes. The issue of earnings is being dealt anew with true focus on margins. A takeover or sale of company is always under stock. It all comes down to execution and mgmt sounded on the cc like they really are finally realizing that shareholders expect earnings., In addition, mgmt gave the impression they realize its time to stop fumbling the ball each/every quarter.
As I mentioned in another thread, Reed's could save approximately $700,000 a year by paying off the debt and stop borrowing. This has been a big drag on earnings for years now, and could have turned quite a few quarters from loss to profit.
When potential investors see too much debt on the books, this can turn them off. If you browse through the past SEC filings, you'll see that the company has relied on too much debt for too long. It seems to be a historical trend and mind-set that just continues.
I don't believe at this point in the company's history that they need to keep borrowing, especially given the rates they pay. I'd like to see this trend reversed, as Reed's could put this annual $700,000 to better use, instead of flying out the window never to be seen again.
It would also put management's and Wall Street's mind at ease, and I believe the stock price would increase due to a healthier balance sheet.
I wish they would address this on the conference calls.