ORLANDO, Fla., Dec. 27, 2007 -- RedChip Independent, a division of RedChip Companies, Inc., announced today that it has initiated research on Jones Soda Company, Inc. (NasdaqCM:JSDA).
Matthew Kantrowitz, MBA, RedChip Research Analyst, reported:
“The stratospheric rise of Hansen Natural is evidence of the potential for smaller players in the carbonated soft drink market. With new leadership, we believe Jones Soda is poised for similar appreciation. At a recent price of $6.30, JSDA’s shares have shrunk over 63% in just the last six months but continue to trade at a 252x P/E (ttm) multiple. A high P/E multiple is acceptable as long as the Company can maintain growth and spread expenses across a broader revenue base. We believe JSDA’s growth prospects are good due to brand appeal, industry trends, and expansion of the Company’s unique product line-up into national retail channels.”
“Additionally, brand awareness and the Company’s enhanced water product line, 24c, could make JSDA an attractive acquisition target. Coke’s recent acquisition of Glacéau, maker of VitaminWater, for $4.2 billion is an indication of this. We are issuing a ‘Speculative Buy’ rating with a 12-month price target of $10.92 based on 91x projected FY 2008 EPS of $0.12, based on improved results expected from new distribution agreements and upcoming products,” he concluded.
To view an excerpt of the RedChip Independent initiation research for Jones Soda Co., please visit:
http://redchip.com/files/redchipreports/samples/JSDAInitialReportSample.pdf
About RedChip Independent™
RedChip Companies, Inc., is a well-established source of independent research and information on the small-cap market. Dedicated to “discovering tomorrow’s blue chips today™,” its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street’s radar screen. For more information please visit RedChip.com or call 1-800-RedChip.
Disclosure
The views expressed in this report and/or any and all other reports associated hereto, (which includes the actual rating assigned to the company as well as the analytical substance and tone of the report), accurately reflect the personal views of the analyst(s) covering the subject securities. No part of the analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. The analyst(s) contributing to this report do not hold any shares of JSDA. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable but is not guaranteed as to accuracy and does not purport to be complete. As such, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities ("related investments"). This publication was furnished on the condition that it will not form a primary basis for any investment decision. Each investor must make their own determination of the appropriateness of an investment in any securities referred to herein based on the legal, tax, and accounting considerations applicable to such investor and their own investment strategy. Any opinions expressed herein are subject to change. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.
For Additional Information Contact:
RedChip Companies1-800-REDCHIP
http://www.redchip.com/
http://info@redchip.com/
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