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Jones Soda Co. (JSDA) Message Board

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  • belco_mc belco_mc Sep 19, 2012 3:24 PM Flag

    Why Delisting Does Not Matter

    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.

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    • it would make no sense for reed to acquire them. reed is a well managed company with a valuable brand. they make soda. jones is a custom label company that sticks photos on soda they paid someone to bottle for them. jones management would have to study to become clueless. hence the 29 cent stock price. hence the delisting, firing of managers, etc... complicated business? soda?

      • 2 Replies to netprophecy2
      • Everything you state was true back when Reed tried to acquire them. I am relatively new to JSDA but it seems to me that this is the first time they are executing on a plan that makes sense. They cannot be a national, mainstream soda company. They must go back to being a niche product with much fewer offerings. Stabilizing the core soda business combined with some success in AuNaturel and Whoopass has the makings of a real turnaround.

      • let me clarify. jones does not believe in anything other than their marketing of unique photos on bottles of crap soda. soda is not a hard business if you actually care about making soda. they do not make soda. they market soda. and they have no growth.

        apparently people are not much interested in supporting a soda marketing organization. and the money for marketing is gone. cutting expenses to the bone so you show $1,000 profit with no growth puts you on the same level as a kid with a paper route that made a $1,000.

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