You miss the point completely. New management team analysed business and as Ceo said made
a judgement call to focus on products and markets that make them money or are the best use of company resources. For example, company was spending more money than it was taking in to market or cover smaller markets. Now they are focusing on bigger markets and cutting product line in order to be profitable. It makes sense. All businesses go through growth stages. And all sometimes
sacrafice profits for growth. Now Jones needs to be profitable. And, no, not anyone can cut expenses. It is not easy cutting expenses and not easy running a company. If it were, there would
be no bankruptcies, no defaulting on loans, and no foreclosures.
i disagree with you. making a profitable soda company is rather easy on a small level. i could go and make soda with a soda stream and put photos on the labels for weddings and charge $3 for a bottle that cost me $1. so easy. instantly profitable.
the hard part is doing $50,000,000 in business. Cue is taking the company in the direction of a tiny profitable company making a couple hundred grand a year selling whatever happens to be selling with a few employees. they do no make soda, so why do they need more than a few employees? i know small law offices that make millions a year. why not open a small law office. or a real estate firm.
and cutting expenses with no regard to sales is so f---g easy a cat could do it. you fire people. done. expenses cut, sales cut. took five seconds. that is why the stock did not react. who wants to buy a tiny slowing soda business with less profit potential than a burger stand?
hence the 29 cent price. but wait, the stock will struggle to hold 20 cent in the next 6 weeks. you might even see 10 cents.
It is not simply giving up small markets for bigger markets.If you look at the web site they are now down to 24 employees total.The company has significantly reduced the amount of effort that they put into engaging the customer on line, but most importantly it appears that they have given up at least for the time being on the east coast.They no longer have any sales personnel covering the eastern part of the country and it appears they will be focusing their efforts on the west coast and Canada. While I am sure they will continue to direct ship to supermarket accounts on the East coast without any people working with the customer it is likely that they will start to lose some accounts in the East.
They appear to be moving towards becoming a regional soda company again, but it is not based on the size of the markets but the companies limited distribution and support capabilities.If the move turns out to be successful moving forward and the company regains it's footing their will be no visibility to the turn around at the retail level on the east coast.