What kind of degree do you have to have or tests do you have to pass to have a job as an analyst that UPGRADES Jones Soda at much higher prices and then puts on a SELL rating at much much lower levels??? And people get paid to give that kind of advice??? Do they really even do their work as they are supposed to? It sure doesn't seem like it. It feels more like they just "play" analyst rather than really be one.
You are refering to Nicole Miller and Piper's downgrade to sell. Well, this one is simple.
Miller had been giving Jones the benefit of the doubt, even after their disasterous 2007. However, this conference call was the end of the rope. Consider:
- She asked about equivalent cases sales to the 495,000 concentrate cases sales in the comparable period in '07. Jones had no answer and basically blew her off.
- She asked about purchase commitments to the stadium deals, specifically looking for amounts and was given some totally off the wall bull shit answer as they blew her off.
- She asked about 'breakeven' and measuring 'return' on "push/pull" efforts... and again, was given some crapola answer and blown off.
- Finally, Miller asked about shelf space and specifically her observation of "shrinking" shelf space in the stores she visited. And once again, she was blown off, not taken seriously, and told they were "very very happy" with their shelf space.
It's performances like that which sink a company in their analysts' eyes. Miller put a lot of stock and trust into this company, and in the end, they essentially told her to go away.
So, she did. It was a pitiful performance by Jones. Don't believe me? Go back as listen to that exchange.
Several months ago I talked about the importance that management begins to BUILD trust and begin treating its investors with gratitude and respect, unfortunately they seem to have not learned one thing from the informal SEC investigation, shareholder lawsuit, implosion of share price, not delivering on promises etc etc.
I don't like the way this management treats its shareholders nor the street, it feels arrogant and without any conscience and that is downright frightening. If anyone listens to the CC closely the analysts seem completely dismayed. However, Nicole Miller was asking genuine and sincere questions and I felt was treated with complete arrogance and disrespect. And Jones is the one who looks stupid, NOT Nicole Miller. It's unbelievable that at this point they still feel the need to hide so much from investors and analysts, such as the specifics of the Seahawks deal etc.
When a company has so many secrets, feels like it's their own little click, puts great emphasis on severance pay outs, their own salaries without first proving they can deliver... it's a huge warning in my book. They seem to show more and more of their true colors with each CC. I'm glad Nicole Miller finally downgraded this to a SELL as it seems it took her a while to see the writing on the wall, but she appears to now finally see it as many have for a while, and yet some still seem so blind to.