Reeds Inc. (REED)

[gfp927z]

>>> Cover <<<


Closing at the low today suggests more downside, then it'll probably base/stabilize for a while. Key support levels look like $5 and then $4.

Looks like an over-reaction to me. Analysts were probably expecting something closer to profitability for 2013 instead of the $1.5 mil loss. I didn't hear the earnings call, but in the transcript I see Chris briefly alluded to a possible equity financing, but he didn't elaborate, and that may have spooked investors. The stock action today was really weak, no sign of a bounce and it closed right at the low. So probably some additional downside in the near term and then a consolidation.

For the longer term I like the company's prospects a lot. The overall market, I'm not so sure..