Jones Soda: What's Behind Its Recent Surge?

Last month, I wrote about Jones Soda (JSDA), and said that it looked like the stock was getting some fizz back.

Since then, the stock briefly dipped back below its 200-day moving average, but recently recovered in a big way.

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There has been no real news to account for the surge in the stock, but over last Wednesday and Thursday, it spiked as much as +25% higher on a big pickup in volume.

This brought the stock back above its 200-day, but on Friday it came close to bumping up against its overhead 50-day average. This is a natural area of resistance, and I expect the stock to pullback, and digest this big move. But after that, I believe the stock will get back above this level, and move back into the low $20s.

The stock got way, way ahead of itself on that out-sized run to $32 back in April. I actually shorted the stock briefly, as I thought it would retraced some of that move. But I didn't think it would come all the way back down to $14. I view any level in the mid-teens as attractive longer-term.

Disclosure: The author is long JSDA.

Comments

[Ezzyme:]

How is the can distribution doing? Is it in stores in your area? Is it staying in stock? If not, is it because of outsized demand or supply problems? Many thanks!

2007 Jul 09 11:40 AM

[dcappe10:]

I would take a look at other small-cap stocks for beverages like Hansen and Reed because they look like the could ride the wave Jones has started. I found a report suggesting possible market booms in the future, but i have to do more research...


-Cheers!

2007 Jul 18 02:33 PM