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Jones Soda Co. (JSDA) Message Board

  • belco_mc belco_mc Sep 19, 2012 11:48 AM Flag

    Why Delisting Does Not Matter

    JSDA made the correct decision to allow themselves to be delisted. With the market cap in the $15 million range, it is already too small for most large managers to own. It doesn't matter if it is on the Nasdaq or OTCBB, it's been on a restricted list for a long time. Maybe a small hedge fund could own it, but not many would even bother.

    The company made it clear both on the conference call and in the 10Q that they were going to be delisted. Anyone caught by surprise by this event just isn't paying attention- which means its mostly individual shareholders. No rational person would sell their stock down 20% on news of a delisting that was already well telegraphed by the company.

    JSDA could be on the verge of a long needed turnaround. If so, the stock in the low 30 cent range will provide strong returns in the months ahead. It is an interesting speculation here and I have been adding to my position from the sellers the last couple days.

    The stock moved up into the 40's on the good earnings a few weeks ago. I think it will move back up there in the weeks ahead as we work through the people selling on the old delisting news.

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    • I agree with you...Delisting isn't important at all since we were below $2.00. There are PLENTY of OTCBB stocks that are trading in the $2.00 range who are not listed. JSDA will be fine and I am happy to buy more now. I think they are close to profitability per Q2 and could yeild massive rewards soon enough.

      • 1 Reply to shyfox9901
      • In last year's 3rd Qtr they lost $1.68 million. That included about $900k higher SG&A run rate and about $900k in higher promotion costs. If they can continue to increase revenues in the 5-7% range with the lower cost structure they are close to break even. They will need some upside from a new product, like AuNaturel. I doubt WhoopAss is going to be a difference maker. It would make sense for Reed to acquire them- they could leverage all the fixed expenses.

    • it no longer matters if they are listed. in fact, it is cheaper not to list due to less legal compliance.
      that said, with flat sales and losses, they are just treading water until the end comes. i do not see any evidence that management understands what the market is and what the product means. to them it is 1995.

      • 1 Reply to netprophecy2
      • Netprophecy, you make valid arguments and offer good reason for the stock trading at .6x revenue. However, in spite of all the screwups over the years they still generate a solid $20 million a year in revenue. They are trying to right size their cost structure and figure out how to grow the business. In your mind, is there anything that can right from here?

 
JSDA
0.434+0.004(+0.93%)Sep 19 3:47 PMEDT

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