moore_capital54 Posted February 8, 2012 Share Posted February 8, 2012 And another one... We recently participated in a financing with Jones Soda buying $.50 cent shares and $.70 share warrants. In addition we own shares through the open market. This is a bet on the strength of the brand, vs. the current market capitalization. There is very little risk of the company going out of business in the foreseeable future given there is no debt on the balance sheet and very low overhead. The new CEO Bill Meisner was formerly Chief Marketing Officer for Coca Cola, and previously worked in the marketing departments for SOBE and Pepsi. He is a stand up guy and I believe he has the skills to turn things around. This one can easily double or triple on any fundamental improvement. The brand alone is most probably worth over $15mm which is the current market cap. Link to comment Share on other sites More sharing options...
Parsad Posted February 8, 2012 Share Posted February 8, 2012 I've followed Jones for a long, long time as they started here. The biggest mistake they made was not selling to Reed's. The soft-drink market is probably one of the toughest businesses to crack as there is basically a duopoly. Not that dissimiliar from the snack food business, beer business or even perfume business. You pay for shelf-space through your nose, so small producers are relegated to being niche products and rarely make it unless they are bought by the bigger players. Jones is bleeding money. The brand is good, but they are losing money every month they are in business. Either they get taken out by someone as they continue to bleed or they go under. Cheers! Link to comment Share on other sites More sharing options...
moore_capital54 Posted February 8, 2012 Author Share Posted February 8, 2012 Parsad, I believe you should speak to Bill Meisner. He is the new CEO, the financing we participated in will carry them for the next year at least given the current burn rate and assuming sales don't pick up at all. Bill has gotten a good handle on costs and I believe you will see that in the last quarter figures. The company now has over $4.0mm in cash with an additional $3.2 coming to it with warrant exercises. Cheers! Link to comment Share on other sites More sharing options...
Parsad Posted February 8, 2012 Share Posted February 8, 2012 Parsad, I believe you should speak to Bill Meisner. He is the new CEO, the financing we participated in will carry them for the next year at least given the current burn rate and assuming sales don't pick up at all. Bill has gotten a good handle on costs and I believe you will see that in the last quarter figures. The company now has over $4.0mm in cash with an additional $3.2 coming to it with warrant exercises. Cheers! That's good! They are going to need it. ;D I like the brand and I love their products, but I'll give you an example of something you see just out in the open. My local Safeway carried Jones Soda for over ten years! I like drinking pop in bottles when I buy the stuff, because it just tastes better when it's cold like beer. For the Superbowl party at my house, I went to buy groceries at Safeway, and lo' and behold...no more Jones Soda on their shelves! Not only Jones, but they got rid of a bunch of other small producers. Nothing but Coca-cola and Pepsi-cola products, as well as Safeway's own brand. Everyone is moving to this other than Costco and Whole Foods. You have the two big producers and your in-house brand. The profit margins are significantly higher on in-house brands than the two big producers, which themselves have margins that are bigger than the small producers like Jones. They just eat you up over time. If you don't get bought by them, you struggle for a long, long time until you give up. I hope they survive because I like their pop. But it's like Buffett says...usually when a good manager tackles a tough business, it's usually the business' reputation that remains intact. Cheers! Link to comment Share on other sites More sharing options...
moore_capital54 Posted February 8, 2012 Author Share Posted February 8, 2012 We are aware of all the macro headwinds within the industry but we are focusing on the price and at current valuation Jones warranted a 2% allocation. Cheers! Link to comment Share on other sites More sharing options...
ragnarisapirate Posted July 9, 2014 Share Posted July 9, 2014 Any new thoughts on this? the business keeps losing, but at least they delisted to save some dough... Link to comment Share on other sites More sharing options...
ragnarisapirate Posted July 25, 2019 Share Posted July 25, 2019 This thing has basically done nothing except for burn money for the last, well... forever. The company just got a bunch of capital (I am guessing 2 years worth, given cash burn) to grow the business with, and go into CBD beverages. Seems like an interesting play at this point, with a decent risk/reward ratio? Kind of neat to see the warrants that have a forced exercise based on the price of the stock. Right now, about 1/4 of the market cap is cash (unlike most cannibus companies) and there is an actual operation to build off of. SOL seems kinda shady, but, their money is green, and in the corporate confines of JSDA. Regardless of the CBD stuff, I really like their fountain drink business. There is actually a potential future with it, and it is high margin. https://www.cnn.com/2019/07/13/business/cbd-drinks-jones-cannabis/index.html Link to comment Share on other sites More sharing options...
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