Growth Stock Story: Jones Soda Co. (JSDA)

by Tarik Pierce on January 31, 2007

Jones Soda Co. (NAS: JSDA)

Now this stock is like a Coke, very slow growth. Jones Soda is an unexciting stock, and a true anchor for any portfolio. For those that don’t know about their company, they make new age type drinks under the label of Jones. The best thing about Jones Soda Co. is that they have nice contracts with a lot of Supermarkets, meaning bigger consumer exposure. Is this a takeover target for a PepsiCo or Coke?

You never know these days; Jones is also great growth story, but recently forward growth has slowed the past couple of years. But hey growth is growth right? Also, the larger investment banks acknowledge the potential for this stock, (and they always know something we don’t) and are buying this stock by the millions. The only negative for this security is a very high P/E ratio. However as I have said before, P/E is only something to look at not base your stock picks on.

Jones Soda 5 Year Chart

Jones Soda 5 year Chart

Ryan Donnell regularly contributes stock market tidbits to Investor Trip. You can read more about him at Ryan’s Myspace Blog.

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{ 7 comments… read them below or add one }

Paul February 2, 2007 at 12:15 am

I don’t get how Jones could be an “unexciting stock” it grew over 100% last year and over 500% in the last 3-4 years.

An anchor in a portfolio? You must have your metaphors mixed up!

I just don’t get it. What are you comparing this “very slow growth” to?

Just wondering.

-Paul

Ryan February 5, 2007 at 10:41 am

Hi Paul,

I apologize I should have clarified myself in my post, a brain fart if you will. I was comparing Jones to HANS through this post. Many are predicting Jones to be the next HANS, like you said the growth has been there. Hence this is why I say it is an “anchor.” Not in the sense that the stock is sinking, but in the sense of what an true anchor on a team is, the go to guy. My phrase “anchor” is used very sparingly because I use it to refer to stocks that are buy and forget. Now I don’t mean buy and hold these for twenty years, I just mean these are the type of stocks that don’t require a lot of maintenance as some other smaller stocks. This isn’t a speculative stock by any means. So I apologize for the mix-up I promise to be more clear about my comparisions and explain my lingo.

jason March 8, 2007 at 9:16 pm

good article, too bad you are totally wrong. JSDA has to be one of the most exciting stocks out there. their conference calls might be the only calls i look forward to listening too. just look at the chart, jeez! also,how is an established large cap even compare to a small-mid growth stock. their national distribution story has to be one of the best stories in the market. i recommend re-analyzing the company.

patrick March 21, 2008 at 6:25 pm

I bought this stock on jan 07 at $30 a piece, listening to these so called expert. now it’s at $2 a share, what bum.

Tarik March 24, 2008 at 7:16 am

Hmm…I have to check this stock out more.

It’s been a tough ride for tons of retail stocks.

Disciplined Stock Investing May 11, 2008 at 1:06 am

Be wary of investing processes which rely heavily on the “tea leaf” reading of stock charts or graphs. Technical analysis can be valuable but ultimately there should be a foundation of solid, clearly understood metrics.

Tarik May 12, 2008 at 2:40 pm

@ Disclipined

I’m more of a fundamentalist, rather than technical trader. However, my friend Ryan has had some amazing success with chart trending in the past.

Everyone has a separate technique that works best for them.

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