It can be disheartening to like a company and watch its stock decline. This is particularly so when it faces delisting from a major exchange, only to be traded over the counter. Eventually, one of two things results. Either the stock continues its decline to reach the sub-penny mark - where its prospects for recovery are slim - or it levels off, forms a multi-month or multi-year platform, and begins an ascent.
Let's look at what is behind the technicals with respect to Jones Soda.
According to the company's Form 8-K filing with the SEC of October 29, 2015, "On October 29, 2015, Jones Soda Co. entered into a Product and Supply Agreement with 7-Eleven, Inc. for distribution in 7-Eleven, Inc. stores beginning in 2016."
According to the Q3 Earnings Conference Call, held on November 5, 2015, we know this much regarding the 7-11 deal.
The company has had a working relationship with 7-11 Canada, and current plans include expansion into 7-11's American market. All parties are under a confidentiality agreement concerning many of the details, however the launch is set for the early part of 2016, and, according to the conference call, investors will hear more details about the arrangement by the time of the next conference call.
Also, resulting from efforts that took place largely during the 2nd quarter, relationships were built with two new retailers; Come n' Go, with 250 + locations in the Midwest, and a new division of Circle K, with about 200 locations in the Southwest, both of whom brought in the Jones Soda brand.
As for the tape, trading volume is still relatively thin, with 213,846 shares changing hands today. (This ought be viewed in the overall context of many other markets being thinly traded as well.) The current bid/ask is 0.49/0.50 - not a very wide spread at all - with an order by NITE (KCG Americas LCC) for 33,570 shares. ETRF (G1 Execution Services) printed a late-in-the-day order for 10,000 with a bid of 0.48. CANT (Cantor Fitzgerald & Co) offered 0.4769 on an order of 2500 shares.
I would certainly watch the Level 2 Montage closely over the next few days and monitor the size of the orders and the bid/ask spreads, as well as who is placing the orders, rather than focusing on the volume overall.
