Friday, December 24, 2010

Microcaps.info Profile: Jones Soda Company

Jones Soda Company was added to MicroCaps.infos' portfolio of holding stocks a few weeks ago. The following is part fact and part opinion and an investor should not use this as a sole basis for an investment decision.


Web presence: Type in Jones Soda into a Google Search and you will find the companies paid ad which states simply their name and "Upload Pictures for Custom Label. Great Soda Flavors & Energy Drinks!" The site has one bottle with a custom picture and but the company clutters the background with their energy drink Whoop Ass, t-shirts for sale, and licensed character specialty Jones soda bottles. The companies web presence seems to be focused on advertising the custom label of their bottles which is perfect for special occasions such as weddings and birthdays. They categorize this as the "myjones" section of their business. If you are looking for the ticker, on Google Finance, Jones Soda is one of the two companies currently under $2 under consumer non-alcohol beverages mixing in the same category as Pepsi and Coca-Cola. A news search of the company brings up their site with their own news first on the Internet search showing that the company is in control of the press released with it's name, at least currently.

Financials: The income statement initially doesn't show much to be proud of. The company's revenue stream has been shrinking for the last three years with the flow on Yahoo Finance showing:

Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
Total Revenue 26,013 35,918 40,165
Cost of Revenue 22,123 28,551 30,387

As well the company seems to not be getting a hold of controlling the cost of revenue which seems to not be shrinking with the revenue stream.

The cash return on sales ratio is negative since the net cash provided by operating activities is negative. The balance sheet in also nothing to be proud of with the cash situation depleting and the retained earnings for stockholder's equity going up, in the negative, and the company paying for more and more with common stock, diluting the common shares. The company does not show any long term investments and most ratios, again, are in the negative looking at the companies past three year history.

PEOPLE:


The majority shareholders are:
Holder Shares Reported
BROWN MILLS A 14,602 Dec 16, 2010
KELLOGG MATTHEW 118,814 Jul 1, 2010
SCHRETER SUSAN A 41,444 Aug 24, 2010
EISWIRTH RICHARD S JR 35,535 Nov 16, 2010
FLEMING MICK 21,177 Jul 1, 2010

So why hold the stock? Well the company has a solid CEO in Mr. William R. Meissner who serves as President, Chief Executive Officer of Jones Soda Co effective April 9th, 2010.

Prior to joining Jones Soda, he served as President of Talking Rain Beverage, Inc., a privately held beverage company, from October 2008 until April 2010. From September 2004 to October 2008, Mr. Meissner was Chief Marketing Officer of Fuze Beverages, a new age category brand and division of Coca Cola North America. Prior to that, from September 2002 to September 2004, Mr. Meissner was Vice President Marketing and Sales of SoBe Chocolate, a brand licensed from PepsiCo, and from November 1999 to September 2002, Brand Director and Director of Brand Development with SoBe Beverages, a division of Pepsi Cola North America. Mr. Meissner began his career with Tetra Pak Inc., a private multinational consumer beverage-packaging firm based in Lausanne, Switzerland, where he worked as a Category Manager and Regional Account Manager from 1994 to 1999. Mr. Meissner earned an MBA from the University of Pittsburgh and a BA from Michigan State University.

As well, Mr. Meissner seems to be a solid financier securing Jones a credit facility earlier this year. And that is not all.

Jones Soda by word of it's CEO, seems to want to focus more on less products, which could see a boost in it's line. If Jones Soda remembers that it is a Soda Company, and not a music or t-shirt business, their focus could create one great company. In the world of stocks under $2, Jones seems to have carved a niche in a business that everyday Americans buy into, SODA. Although they do not currently have a regular cola for sale on their website, the company has backing from major investment banks which hold their stock. Will they become the company wall street should have had a larger holding in? Well a little more focus on Soda, Soda, and Soda and yes, we believe so.

No comments:

Post a Comment