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

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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