Can Jones Soda Escape the Hansen Trap? (JSDA, HANS)

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By Douglas A. McIntyre Published
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Jones Soda Co. (NASDAQ:JSDA) is set to report right after the close today, and it is actually surprising that the stock hasn’t seen more selling just out of sympathy with Hansen.  The soda and beverage maker is expected to post $0.02 EPS on $18.85 million revenues. 

One thing the company needs to figure out is how to shrug of the niche growth stock trap.  If the company hits the $0.18 consensus estimate for fiscal Dec-2008, it still trades just under 50-times forward earnings after todays sell-off.

At $8.90 its trailing P/E is still listed as "almost 100" on most systems.  The company obviously has a lot ahead for it with its niche drinks and its recent sports win, but it sure feels like in the last two days that the market isn’t going to pay for growth in the same manner it was willing to just last week.   

Hansen Natural (NASDAQ:HANS) was so confusing this morning that it’s no wonder shares went to hell in a hand basket.  The officers need to go to ‘press release’ school. Really.  Shares of Hansen were down almost 30% at last look.

Jones Soda shares are down 1% at $8.90, and the 52-week trading range is $8.50 to $32.60.

Jon C. Ogg
November 8, 2007

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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