Jones Soda Co. (USA) (OTCMKTS:JSDA) Crashes After Q3 Results

In early September the stock of Jones Soda Co. (USA) (OTCMKTS:JSDA) started to climb up the chart and despite a couple of setbacks it still managed to reach a new 52-week high of $0.52 per share last Thursday. Is the positive performance come to its end though?

After last Thursday’s session was over JSDA announced their financial results for the third quarter of the year while also holding a conference call to discuss the recent operations of the company. Well, it seems that what the company had to say failed to meet investors’ expectations and when the market opened on Friday JSDA immediately plunged for the bottom of the chart. By the time of the closing bell the stock was sitting over 11% in the red at 0.44. The drop took place on a volume five times higher than the monthly average.

Before we look at the disclosed financial results we should start by stating that JSDA is far from the typical pennystock. Jones Soda is a former NASDAQ company but it got delisted back in 2012. Still, they sell real products and generate revenues in the millions. According to the 8-K form filed on Thursday they finished the quarter ended September 30 with:

• $491 thousand cash
• $6 million total current assets
• $3.8 million total current liabilities
• $3.76 million revenue
• $179 thousand net loss

As we said JSDA lacks many of the red flags usually found when dealing with pennystocks – the company has a positive working capital, lacks any signs of toxic debt, and it even finished the quarter with $3000 income from operations. The problem is that compared to the same period last year the reported revenues have shrunk from over $4.3 million to the current $3.76 million. For the nine month period JSDA has generated $10.9 million in 2015 compared to $11.1 million in 2014. At least the net loss has been cut in half and for the first nine months of the year it stands at $575 thousand.

JSDA still has some hurdles to face but the recently announced Product and Supply Agreement with 7-Eleven, Inc. could push them further in the right direction. JSDA‘s products should become available in 7-Eleven stores in 2016.

For now the stock of company may remain a volatile choice. Do your own research and adjust you trades accordingly.