Thursday, May 11, 2006

JSDA - Jones Soda Co.

Man oh man! Sometimes you know the feeling. I should have bought this one. I can remember doing stock screens several years ago looking that this one JSDA. I also have to admit I am a big fan of the not only the niche drinks, the designs, but I love the pictures on every bottle and can! It's just a cool, great idea, and I really sort of became a fan of Jones Soda! Not to mention that they just taste flat out the best!

But, moving on into the investing world. Let's take a close look at this one. Some are saying it's to high, others are saying it's a strong buy!

JSDA did break out of the handle with a nice long volume bar on 4/28. It then traveled sideways with some uncertainties through earnings. Today signifies AMAZING strenght in the breakout and I predict JSDA to keep a VERY VERY strong uptrend in order. If any sort of good news gets released we blow past $15 in no time. Personally I would say it's a strong buy even at 10.22... I AIN'T SCARED! But like always do your own research on this one, and let us know what what you think or decide!

Another note is that JSDA is expensive. Companies that have the potential to grow exponentially are always expensive. For every one of these stocks that end up justifying the most bullish predictions, there are 4 or 5 that completely disappoint the bulls. But, speculators will pay up for the chance at a home run. Last time I looked, JSDA didn't do any bottling for themselves; they contract it out. Likewise the frozen supermarket treats. That means there are virtually NO LIMITS to JSDA as it ramps up. They have a powerful brand and image which they are leveraging in all kinds of creative ways. They have lots of cash. No debt. And most of all the people at the top of the corporation seem to really be having a GOOD TIME!!!! That is priceless.

Will JSDA defy the odds and hit a home run? Will it be the one out of five?


So long as Jsda grows revenues 20%+ and the beverage industry is considered sexy and ripe for consolidation with examples of Snapple and Sobe among others in investors' minds and Hans going parabolic, JSDA -- with successful niches, great DTR accounts, a good balance sheet and exploitable patents, will likely remain hot.

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