A combination of strong price performance and favorable technicals sum up Jones Soda Co. (USA) (OTCMKTS: JSDA) solid performance in 2019. The stock has taken flight depicted by a 200% plus spike after coming under immense pressure in 2018.
JSDA Catalysts and Price Analysis
If recent price action is anything to go by, then Jones Soda looks set to continue climbing the ladder after registering a new 52-week high. Fuelling the upward momentum among other things is the confirmation that the company has entered into a five-year supply agreement with Zeeks Pizza. The deal paves the way for the company’s products to be made available across Washington State.
The company is also fresh from posting impressive financial results for the first quarter ended March 31, 2019. According to the Chief Executive Officer, Jennifer Cue, the company achieved significant progress in the first quarter, as core brands continued to resonate with customers.
The inking a supply agreement with Walmart is another milestone that explains why the stock flying high given the potential impact of the deal. With Jones Soda resorting to trading in a steep uptrend, pullbacks have so far acted as strong support from where the stock has continued to edge higher.
A spike to the $0.86 mark appears to have attracted short selling pressure, resulting in the stock correcting lower back to the $0.72 level. However, the stock has once again started surging signaling further upside action.
Standing in the way of further upside action is the $0.86 resistance level. Conversely, a breach of the $0.72 support level could result in the stock plunging back to the $0.60 mark, which appears to be the next support level. Above the $0.60 mark, Jones Soda remains bullish and supported for further upside action.
What Does Jones Soda Do?
Jones Soda is a beverage company that develops premium soft carbonated drinks for distribution across the U.S. The company distributes its products under Jones Soda and Lemoncocco brands. It boasts of a diverse product line made up of pure cane sugar soda as well as zero calorie and Lemoncocco.
Why is Jones Soda Skyrocketing?
Shares of Jones Soda continue to register impressive market gains as investors take note of the company’s tremendous potential. The company continues to fire on all angles when it comes to operational efficiency as the core business continues to grow at an impressive rate.
Jones Soda could as well be on its way to posting sales growth having inked supply agreement with Zeeks Pizza. Under the terms of the agreement, the growing Pizza chain is to distribute the company’s diverse product line made up of Cane Sugar Fountain Soda as well as Jones Cane Sugar and its newest brand Lemoncocco the across Western Washington.
“Partnering with a like-minded, authentic and iconic brand like Jones Soda is an important milestone for Zeeks as we aim to provide more local products that have integrity and resonate well with our customers,” said Dan Black, president of Zeeks Pizza.
The supply agreement could not have come at a better time as Jones Soda is experiencing robust growth in its fountain and Lemoncocco initiatives resulting in a 52% and 13% revenue increase respectively.
The company has already finalized an agreement that will see its products made available in over 1000 Walmart locations across the country. In Canada, Jones Soda Bottles will be on display at 7-Eleven locations.
“Launching our iconic craft soda 4-packs in three of our most popular flavors at Walmart locations across the U.S. is a significant step forward for Jones as we continue a strong start to 2019. Retailers continue to see the importance of having craft soda offerings at their stores as consumer preference continues to shift towards premium soda that contains high-quality ingredients and unique flavors and packaging,” said Ms. Cue.
What Next For Jones Soda
A meteoric rise to the $0.77 level means Jones Soda is flirting with levels last seen in 2016. Amidst the spike, the stock remains positioned to continue climbing the ladder given the underlying fundamentals supporting the steep uptrend.
The fact that the Company’s premium line of craft soda products are finding their way into some of the biggest retail chains points to a record-breaking year when it comes to sales generation. That said market sentiments should continue to improve, ideal for supporting further upside action.
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Disclosure: We have no position in JSDA and have not been compensated for this article.