Shares of Jones Soda Co (USA) (OTCMKTS: JSDA) are once again skyrocketing after coming under pressure in 2018. The stock has continued to register higher-highs on the iconic beverage giant delivering impressive financial results for FY2018.
JSDA Share Price Analysis
The stock has since skyrocketed to three-year highs on the confirmation that SOL Global investments has completed an 8% stake acquisition in the company. The investment affirms growing institutional confidence about the company’s growth prospects in the beverage space.
Shares of Jones Soda have since resorted to trading in a steep uptrend with pullbacks acting as buy opportunities from where bulls have continued to push the stock higher. A spike to the $0.73 level means the stock is flirting with levels last seen in 2016.
A breach of the $0.74 technical level would open the door for the stock to make a run for 6-year highs at $0.90 level. Over the last five years, the stock has seen its upward movements restricted below the $1 a share level.
However, the stock is likely to make a comeback, to the psychological level given the strength of the upward momentum.
Conversely, pullbacks from current highs would have to contend with support at the $0.50 mark, from where the stock embarked on the current upswing.
What Does Jones Soda Do?
Jones Soda produces and markets a wide range of beverages across the United States through its subsidiaries. Its lead products include premium-carbonated soft drink, Jones Soda, and Lemoncocco a premium non-carbonated beverage. The company sells its products through a network of independent distributors as well as through regional retail accounts. It also operates an e-commerce platform.
Why is Jones Soda Exploding?
Shares of Jones Soda started surging on the company reporting a 5% increase in revenue for the three months ended December 31, 2018. The company attributed the increase to a 179% increase in fountain revenue and a 5% increase in sales from its Jones glass bottle brand.
According to the Chief Executive Officer, Jenifer Cue, 2018 was a pivotal year as they successfully leveraged the strength of their balance sheet to expand the sales team.
The company is forecasting yet another breathtaking year, having started the year with the introduction of Jones Ginger Beer. Jones Soda has also expanded its glass bottle portfolio with the introduction of two new sugar-free options.
“We believe consumers’ demand for craft soda also continues to shift in our favor, as we will begin rolling our products out to approximately 1,000 new regional chain accounts over the next several months. As customer preferences continue to evolve towards craft and premium sodas, we believe we have powerful brands and the necessary distribution to capitalize on this growth in 2019 and beyond,” Cue in a statement.
While a positive 2019 outlook has helped shore the stock’s sentiments, confirmation that SOL Global has completed an 8% stake acquisition in the iconic soda market has got investors psyched up. The stock rallying 40%-plus in response to the news underscores how confident investors remain about the stock’s long-term prospects.
Sol Global Investment
SOL Global investments should go a long way in strengthening Jones Soda push for market share in the non-alcoholic beverage marketplace, poised to clock highs of $1.2 trillion by 2023.
“Jones Soda has an iconic, retro brand in the Soda Bottle and Fountain Beverage sector, and we believe the market will recognize the company’s true value as its new offerings gain steam. It is clear that Jones Soda is committed to being on the front lines of innovative product development while staying true to their iconic brand,” said SOL Global Chief Investment Officer Andy DeFrancesco.
Jones Soda has taken a flight, as investors remain bullish about the company’s long-term prospects. The SOL Global investment has all but continued to affirm the company’s long-term prospects as an investment play.
After the recent spike, the next stop seems to be the $1 a share level. However, the stock must first breach the $0.74 critical resistance level.
Even though the stock has turned bullish, it would be wise to wait for pullbacks before entering long positions, as the stock looks set to continue climbing the ladder over the long run.
We will be updating our subscribers as soon as we know more. For the latest updates on JSDA sign up below!
Disclosure: We have no position in JSDA and have not been compensated for this article.