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Jones Soda Co. (JSDA) Message Board

  • baldingcontrarian baldingcontrarian May 30, 2013 6:49 AM Flag

    Keep your eyes on the ball

    I know everyone has an opinion on dilution, warrants, future qtrly numbers, etc etc. However, there are a couple key factors to keep in mind,
    1. JC has more skin in the game than all of us combined. Her fortunes will ride on the stock price.
    She has vastly more incentive to do more with less and has under promised and over-delivered. In the fall of last year she said that Jones only could be internally financed until mid 13. Well guess what? We are in mid 13 and there is well over a million dollars in the bank, an untapped LOC, and a possible windfall from warrants is becoming more visible, week by week.
    2. q2 will likely be 100k loss or better, and when you add back non cash items like depreciation, cash flow may even be better than reportable GAAP earnings. Ditto q3.
    3.Q4, as receivables flow in from the Summer and inventories can be kept trimmed ( *as another poster pointed out, and last year bears witness), we will likely see another cash flow positive quarter similar to 2012/q4.

    Therefore from a strictly cash on hand standpoint, as the market is confirming, JC is managing the business very well. In prior years Jones was burning millions of dollars and this year will be vastly different. Again, look at the last 2 qtrs. for example, a total of 200k used. Now we have a few more salespeople, cheap viral marketing with FB and the poutine soda hoopla, and the incremental growth the 30 cal natural offering will bring. We are working off a tiny base of sales and I would think there will be more announcements that we can only speculate on at this point-but they will come. Why? Remember point one-for the first time a proven winner of a manager has every incentive to make herself, and longs, a great deal of capital gains.
    Again, in 2002, this company had no cash, but made the correct moves, and quickly became profitable. They grew profits for four more years, until just after JC left. Longs can look forward to a b/e or profitable quarter sometime this Summer or Fall. GL

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    • Great post. Insiders, especially JC, have strong vested interest, especially if we are talking about a multiyear, mulit dollar PPS turnaround strategy with growth. Cost control has been proven, now its a question of growth while ensuring that SG&A grows much less than GM.

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