I cant find any reason for a long to sell shares, just traders. Everything is on track vis a vis the sequential improvements. 2nd quarter will be good but still compares a meissner 2012 qtr with a JC qtr. 3rd qtr will be the first test of YoY comparables under JC's leadership.
It is definately a milestone that she was able to bring break even rev from 50MM/yr to 20MM/yr. That is a HYUGE
accomplishment. Honestly, I think it is more like 18MM/yr but JC is an under promise/over deliver sandbagger-
which is what I like to see.
however the stock will pull back to .45 in the near term. Then it goes back up.
um, compared to previous qtr, ie JC's/JSDA other winter qtr, sales up slightly, gross margin up and loss down. Now we go into Summer with two new accounts, WFMI and Albertsons.
and both just started a breakout. 5 weeks I've been telling you folks that the big gains in MNST are in the rearview mirror. No mas multibaggers here. JSDA and REED. do your own DD as always. Plus both of their respective top insiders have been buying in the last 7 months.
I consider the move up before the delisting as an important matter, because the delisting vs reverse split decision gave the market the impression that future capital raises through dilution would be much more difficult and or onerous on the company. The stock went up to .50 before the delisting with just one quarter of data from the company, which was JC's first quarter as CEO. As I pointed out in my post two months ago,
the fact that JC said there was no need for dilution this year, changed the ballgame for investors. What is also important is that as the stock price rises, the company may get the advantage of a 2.1MM cash windfall should the .7 warrants become in the money.
I think there is a 50-50 chance for full year profitability for Jones. Even if that does not happen the .7 figure only amounts to a 27 MM market cap which is not unreasonable given the recent operating results.
I'd say 36-38MM is more realistic, but still conservative. Besdides the other drivers, is new PL known and unknown and the adjustment of cooler space, favorable to REED, this time of year for the upcoming Summer season. The qtrs I surmise will be 8, 9.5, 10, 9 (MM/REVS) conservatively.
It's been a good period to be long REEDS and Jones. Tomorrow brings high .59, close 55. That's my WAG. Hopefully I'm wrong, cause it builds humility.
when a stock is green after going up 20% the prior day (and closes HOD on both occassions) you can almost count on a 3rd strong day. .53 tomorrow no sweat, imo.
OT, JSDA. returning to profitability after 7 years. last qtr cash flow positive. CEO has made tremendous turnaround effort, insider buying across the board, and vastly undervalued. do your own dd.
while your analysis is some ways rather well reasoned, you miss touching upon an intangible subject.
Cue is proven successful manager and PLSB execs, dont fulfill an investors trust tank to the top.
My mentor Buffett says to buy franchises with good management. Well, PLSB doesnt yet have an established franchise nor a mngt team with the success record one would usually look for.
In my opinion.
looks like will range from .45-.57. This new range will be tested with earnings release. They lose less than 200k and or grow revs sequentially and the market will be happy, imo.