Jones Soda, Co. (OTCMKTS:JSDA) Marches Up Ahead of Q1 Results

Jones Soda, Co. (OTCMKTS:JSDA) is a ticker worth noting, going on a steep upward leg to reach 53 cents, its highest price in almost a year. The volumes are modest, very far from the picture in December 2011 when the stock was briefly promoted. Now, JSDA rises on a series of press releases, and inviting caution since the stock may fall by as much as 50% in a short period, as its graph shows in the past.

JSDA specializes in novelty soda products and souvenirs, and shows a longer-term potential than the usual penny stock. In the past, the company stood above $2 per share, but has not managed to revisit the heights. Still, let’s take a look at the financial data recently released to see how the colorful sodas with custom-made labels are doing on the market:

• $3 million annual revenue

• $2.9 million annual net loss

• $1.6 million cash

• $2.2 million total liabilities

There is a slow downward trend in revenues, but the net loss has been narrower in the past years, so far showing JSDA is on track to become a successful beverage company. Still, its stock may show fluctuations in the next few days, especially following the conference call concerning the first quarter earnings. The news may extend the rising trend, or investors may decide to sell off. Still, the volumes in the past days were relatively small, around half a million shares per day, and with 38 million shares outstanding, JSDA may be easily affected by larger buying or selling.

This ticker is relatively free of very fast fluctuations within a few short days, but still publicity may push it beyond the usual price levels. It is possible that JSDA may again receive attention from pumpers trying to boost their record with a relatively stable company.

The soft drinks business is not too rare among penny stock companies, and some tend to be better survivors. Bebida Beverage, Co. (OTCMKTS:BBDA) was also promoted at the end of 2011, but since then shed most of its value to trade at double-zeroes, turning into a speculative short-term bet.

Outside promotions, JSDA relies on distribution news, reassuring investors it is constantly reaching new markets. But no matter where the drinks go, it is best to make your own judgment about the risk of any OTC stock. While some tickers may be affected by the amazing boost that the general stock markets achieved, there is no guarantee that the factors that took Dow Jones to 15,000 points will continue, and no guarantee that penny stocks will not turn the amazing trends of later months.