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any of you guys trade Jones Soda?

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Posts: 3

be easy

MVP

Joined: Oct, 2006

Posts: 15433

Posted: Aug. 30, 2010 - 12:06 PM ET #1

any chance this is worth a trade at 1.00?

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captjohn67

Banned

Joined: Apr, 2008

Posts: 12821

Posted: Aug. 30, 2010 - 12:26 PM ET #2

https://www.jonessoda.com/invest/financial_reports.php

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wallstreetcappers

Covers Linesmen

Joined: Feb, 2003

Posts: 56778

Posted: Aug. 30, 2010 - 12:50 PM ET #3

Well you dont really like my comments much, but of course I will make one anyway-

28M market cap..21M in sales, so selling at about 1.4 times sales.

2M in cash, no debt, book value about 25 cents a share.

Margins are negative, cash flow negative, sales falling off a cliff.

They went from 40M in sales in 2007 to 26M in 2009. With sales this low, their GROSS margins are in the 15% range, that is just sales less cost of direct sales, not even including R&D or SG&A.

Their net tangible assets keep dropping and dropping and dropping because they are cash flow negative and dont have a ton of cash to access.

It looks like they paid off some debt recently, I guess they might be trying to reduce interest expense and manage their sales slowdown, that or prep themselves for sale..I dunno.

Also interestingly over the last few quarters they have been selling assets..their asset total has dropped from 18M a year ago to 10.5 M last quarter.

They did a RIF to slow operating costs and opened up a line of credit to draw on, so they wont be running out of "cash" for a few years.

If you were betting on a big sales turnaround that might be a reason to try the stock, but without a way to increase sales they will eventually run out of cash since they run negative margins and havent made money in multiple years.

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any of you guys trade Jones Soda?

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