Jones Soda: The New Prodigy in Town

| About: Jones Soda (JSDA)

Anyone remember Hansen Natural (HANS)? Let me jog your memory. This is a $3.5 billion company that made investors 8000% from June 2003 through June 2006 as the stock charged from a split adjusted 53 cents to over $43 - not too shabby.

Although some might know them for their fruit juices, the company is better known by their Monster Energy Drinks.

Now it seems like there is a new prodigy in town: Jones Soda (NASDAQ:JSDA). The stock has exploded since December when it was a $5 unknown name, to $30 last week. As you might have guessed, this company "makes and sells" (I don't want to use the word manufacture since this is a food item we are talking about) fruit juice, carbonated beverages, water, green tea etc.

Sales and earnings have been growing at triple digit rates these last few quarters. Analysts polled by Thomson Financial estimate Jones' earnings will jump 69% this year to 22 cents a share and move up another 77% the next year. The company distinguishes itself by using pure cane sugar in their soft drinks and by its unique flavors.

Until recently, their canned carbonated drinks sold almost exclusively at Target. However, by summer, they will be expanding their retail exposure to 25 retailers - which will give it a big boost in sales in the coming quarters.

The stock had gotten ahead of itself, but has pulled back from $30 to $25. At $25, I like the stock and would buy this on any further dips. They plan to launch an ad campaign very soon and I would rather get in this name before the campaign launches.

JSDA 1-yr chart:

About this article:

Tagged: , Beverages - Soft Drinks
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here