A Look Behind Jones Soda Co. ( USA ) (OTCMKTS:JSDA) Surge

by Frank Jones | Last Updated: March 3, 2016

By entering your email address you agree to get email updates from Microcap Spotlight. We'll respect your privacy and unsubscribe at any time.

Jones Soda Co. ( USA ) (OTCMKTS:JSDA) has been on a steady uptrend rising over 100% since August 2015. It is still in the early stages of its comeback story but from its glory days in 2007 when the stock traded as high as $31. This company is much different from many penny stocks ventures and there maybe reason for continued optimism.

JSDA recently announced the launch of its new product, Lemoncocco. It is a premium non-carbonated blended beverage brand. This is an exciting development and is an entirely new category. The product is inspired by unique refreshment stands found along the streets of Rome in Italy. The flavor is extracted Sicilian lemons delicately combined with coconut cream. Lemoncocco is a natural, lightly sweetened beverage with cane sugar and only has 90 calories for a 12 oz serving. It captures a growing segment of health conscious consumers. In addition, it is also a dairy and gluten free beverage that will capture another market that continues to gain traction.

Another recent announcement that is behind the recent surge in JSDA stock price is the launch of 7-Select. Jones Soda and 7-Eleven partnered together to create the 7-Select premium soda brand developed by JSDA. 7-Eleven is the world’s largest convenience retailer and opens the door for JSDA turn-around story. This opens the door to millions of potential customers and to upside in JSDA revenues and long-term profitability. We will continue to monitor the situation.

Due to mounting financial pressure from declining revenues, growing losses, and significant debt the company had no choice but to delist from the NASDAQ. Its stock price plunged from $32 to $0.25 during the great recession and has not been able to shake its history. JSDA has taken the right steps to set itself up for the future and to stabilize its financial performance and brand. It re-hired Jennifer L. Cue as CEO to implement and execute a turnaround strategy.

Part of the strategy was re-aligning the company’s resources (capital and spending) to the size of the company it is today which was much smaller than it was during its hay days. Second was to capture the growing trend of health conscious consumers and to launch a low calorie product line that is full of flavor and good tasting. Third, the JSDA needs to focus on core markets and distribution partners. It also needs to focus on core product lines that can achieve sustained long-term growth and profitability with an efficient operating structure. Fourth, JSDA needs to have the right people and right team. This means highly motived and entrepreneurial focus individuals that can drive JSDA into its future. Lastly and most important is re-invigorate the brand by focusing on marketing initiatives.

Investors are now starting to see the fruits of its turn-around and potentially a floor in the stock price. Technically speaking, the stock is at record highs for the years which means. This clearly indicates that investors are optimistic about the performance of the company. Its yet to be seen whether JSDA can create a long-term growth strategy and turn the company around to its glory days.

We have a Monster Pick Coming. Subscribe Right Now!

Jones Soda Co. ( USA ) (OTCMKTS:JSDA)
JSDA is currently trading at a $24.65 million market valuation. The company is still trying to turn around from its rapid decline and trying to stabilize its financial performance and brand. It is making moves in the right direction by developing key partnerships with industry leaders and breaking into new markets with captivating brands. JSDA still has a long way to go to prove itself, but it is an exciting story that could be the turnaround of the year.

We will be updating on JSDA when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with JSDA.

Disclosure: we hold no position in JSDA either long or short and we have not been compensated for this article.

Subscribe To Microcap Newsletter

By entering your email address you agree to get email updates from Microcap Spotlight. We'll respect your privacy and unsubscribe at any time.