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.01?!
I think that before we'd see that level, something catastrophic must happen. It's had a floor of support at .26 over the long term. That was as low as it went even during the big crash in 2009.
I'll say this much - it's a wild ride, even trying to swing trade this one.
Much has transpired since your post of late July. As of today, it looks like price is seeking firm footing on the 40 week MA, which magically coincides with where it is perched on the 200 day MA.
For this purpose, I find the Gallery view at Stockcharts.com to be quite handy. http://stockcharts.com/freecharts/gallery.html?flxt
I agree that the first hurdle to be taken out is at $0.20, followed by $0.26, $0.30, and $0.35. If those levels are penetrated, it should make for smooth sailing.
Right now, waiting to see if it holds at the current level and rebounds is where the action is. Time will tell.
Maybe so, Carl. But from my standpoint I'm looking at it in terms of being stuck under overhead resistance beneath the 50 day MA. This may not last forever, pushing it down to $0.0001.
Is that where you think it may be going?
I say "right stock, wrong time." I liquidated my position to lock in some gains when it was apparent that this pulback would take some time to complete. Summer's almost over, and I'm optimistic that the technicals will eventually entice me to buy back in.
The Point & Figure chart puts the bullish price objective at $2.10. That would certainly make for a nice payday.
By way of offering a cautious heads up, those looking for a real bargain may wish to look at Box Ships Inc., which trades on the OTCQX for $0.0405 under the ticker TEUFF. A Morningstar report and Level 2 are available for free at the OTC quote page for the stock.
Time to shop ships - at long last!
According to the most recent conference call, things are looking up.
As explained in a press release avalable on OTCMarkets.com, "Jones Soda Co. Reports Fiscal 2016 Second Quarter Results," released on August 4:
Second Quarter Review - Comparison of Quarters Ended June 30, 2016 and 2015
* Revenue increased 1% compared to last year.
* Case sales volume increased 7.0% compared to last year.
* Gross margin increased to 25.2% of revenue, compared to 24.7% last year.
* Net loss improved to $65,000 or $(0.00) per share, compared to a net loss of $116,000 or $(0.00) per share last year.
Year-to-date Review - Comparison of Six Months Ended June 30, 2016 and 2015
* Revenue increased 19.9% compared to last year.
* Case sales volume increased 34.6% compared to last year.
* Gross margin increased to 26.3% of revenue, compared to 25.1% last year.
* Net loss improved to $16,000 or $(0.00) per share, compared to a net loss of $394,000 or $(0.01) per share last year.
Transports among top gainers of the day.
Today's top gainers among major exchange listed stocks (not counting OTC listings) included Seanergy Maritime Holdings (SHIP). The company owns six Capesize and two Supramax vessels, and is based in Athens, Greece. The stock boasted gains of 113.79% on volume of 6.18M shares.
Next on the Hit Parade was Sino-Global Shipping America, Ltd. (SINO). Up 48.34% on volume on volume of 11.0M shares. The company, through its subsidiaries, "operates as a shipping agency, logistics, and ship management services company primarily in the People's Republic of China and the United States. Its services include shipping agency services," (This company is not listed as a part of the shipping industry directly, rather it is listed as Services | Air Delivery & Freight Services | USA).
Next in line among true shipping stocks (or those so categorized) was Euroseas Ltd. (ESEA). Up 13.82% on volume of 1.78M shares. "The company owns and operates container ships that transport dry and refrigerated containerized cargoes, including manufactured products and perishables; and drybulk carriers that transport iron ore, coal, grains, bauxite, phosphate, and fertilizers. As of April 1, 2016, it had a fleet of seven containerships; and five drybulk carriers comprised of three Panamax drybulk carriers, one Handymax drybulk carrier, and one Kamsarmax drybulk carrier, as well as three newbuildings." The company is also, by golly, a shipping company based in Greece.
Globus Maritime Limited (GLBS) enjoyed a very good day as well, posting 46.43% gains on volume of 9.4M shares. " The company owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes." The company is based in Athens, Greece.
DryShips, Inc. (DRYS) turned in 11.54% on volume of 9.09M shares, but that's not a big gain for a stock that closed the day out at only $0.40. (WARNING: Before hopping on board this liner because the ride is so cheap, there is talk of a 4-1 reverse split to maintain listing compliance.) "The company operates through Drybulk and Offshore Support segments. The Drybulk segment provides drybulk commodities transportation services for the steel, electric utility, construction, and agri-food industries. The Offshore Support segment offers its services to the global offshore energy industry. As of March 31, 2016, it owned a fleet of 20 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.5 million tons; and 6 offshore supply vessels comprising 2 platform supply and 4 oil spill recovery vessels. The company was founded in 2004 and is based in Athens, Greece."
Navios Maritime Holdings Inc. (NM) appears to be holding ground on support, having closed at a mere $0.96. It was up 2.46% today, on volume of over 600K shares. Institutional ownership is a respectable 23.80%, and insider transactions were up a hair at 0.13%, according to the latest data.
Among the volume leaders in the shipping industry as of today are GLBS, DRYS, TOPS, SHIP, STNG, DHT, and EGLE, all of which managed to churn over in excess of 2.5M shares according to the Finviz screener.
Clearly the waters are getting a bit choppy - which may a good sign for an industry that has, on the whole, carved out a multi-year bottom on the charts. Conventional wisdom holds that when long-depressed sectors rebound, their stocks come breaking out with great velocity. Whether that holds true in today's market remains to be seen.
History will tell whether the expansion of the technological marvel that is the Panama Canal will be the catalyst that revitalized this ailing industry.
FLXT Technicals - PnF breakout markup
Nice call, TrendTrade2016. Your analysis is right on target. And, as john Murphy points out, the weekly chart is the most important of them all.
By way of offering another way of looking at the technicals, I've minimally marked up a daily PnF chart with two downward-sloping trendlines, and the major point of overhead resistance. This result was obtained using the "automatic" settings, with a dynamic ATR of 3, and the reversal marker displayed. Note how clearly the downtrend line, when extended, leads right to the point of the recent breakout, as well as to the reversal point itself.
With these settings, at this point in time the tentative bullish price objective is $0.52. Assuming that the charts look as robust on Monday, I may just stake a claim on a number of shares, and stand poised to sell at $0.50. That would certainly not be a bad result at all if I can fill for under $0.25.
Chart courtesy Stockcharts.com - Click to enlarge
Navios Maritime Holdings in perspective.
On June 26 of this year, crowds cheered as the Chinese Cosco container vessel Andronikos made the first ceremonial pass through the Agua Clara locks of the Panama Canal carrying over 9,000 containers.
The event marked the opening of an $6.87-billion Cdn expansion of the technological marvel that is the Panama Canal. The massive project tripled the size of the ships that can traverse its waters, effectively doubling the Canal's capacity. The renovations offer the potential to reduce global maritime costs by an estimated $10.46 billion a year.
That, ladies and gentlemen, is a major news event. And, it is one with a tremendous impact on the global maritime shipping industry. Never has the old adage "a rising tide lifts all boats" been more apropos.
Whether this event will prove to be the major catalyst for a longer term sector breakout remains to be seen, but this much is certain: individual stock prices are greatly influenced by the sector they are in, and every sector breakout will have its leaders and laggards.
Among the leaders at this time is Top Ships (TOPS) which provided a spectacular breakout without any warning last week. The stock surged from just above $1.50 a share to quite nearly $5.00 before closing on Friday at $4.04, marking a 25.47% increase during the day. Its weekly gain tallied up to a rather respectable 162.24%.
Navios Maritime Holdings had a good week as well, closing at $1.19 while chalking up gains of 21.44%. From a technical standpoint, it now faces overhead resistance from the 200 day MA at around $1.27, as well as resistance from the 40 week MA at about the same level. It appears to be standing on a clearly formed foundation of a long-term multiple bottom. The battle lines are quite clearly drawn.
No stock should be studied in isolation, and there are some similarities to be found among some of the other charts in this sector. By way of example, Diana Shipping (DSX) also appears to be coming out of a complex bottom, with the battle lines against a declining 200 day MA and the 40 week MA clearly delineated. DSX has formed a tight flag that is not a typical downward-declining bull flag. I consider this setup to be intriguing.
Nimble traders may find some good opportunities for very short term swing trades in this sector over the coming weeks. I may just fall back on my strategy of hopping on board a few momentum plays on Wednesday, and closing out those positions on Friday's market close. It's always nice to have a little extra pizza money in your pocket over the weekend.
All charts this time around courtesy of Finviz.com, which offers a very refreshing change from having to sort through the OTCQX, downloading spreadsheets, and making up watch lists for charting. (Those Canadian mining companies really put me to work this summer with their Over the Counter TSE equivalents).
Why Navios Maritime Holdings.
On June 28, a Zacks Analyst Blog entitled "7 Incredible Fallen Angels from Small Caps for Your Portfolio" included NM among its fallen angels. The stated goal of the Zacks screening algorithms "is to pick stocks that can supersede near-term pressure and lead to profitability in the long term."
That sounds good to me. Now I don't have to pour over all of that largely superfluous financial data at places like Finviz.com trying to find the magic combination, because Zacks does all of that work for me. When you go to the Zacks profile on Navios, as of July 22, you'll see that NM has been rated as a Zacks #1 - Strong Buy. Isn't that nice of them?
Now let's talk about the technicals, because that's what I understand far better than the fundamentals.
1) As a rule, I avoid stocks under the 200 day MA, but when they've sunk as low as some of these shipping stocks have, there is no choice but to forgo that rule unless one is willing to miss the opportunity of being near the bottom where the potential for the most explosive gains may be found.
2) It bears mention that NM has formed what is apparently a multi-month complex bottom. Thus, we have a good sense of where the foundation of support is. That foundation is something of a safety net serving to minimize the risk of complete ruin for the position.
3) Shipping stocks are long overdue to break out. It's been a long time since the crash of 2009, and this is among the few sectors remaining that haven't made some serious upward movement. Now the sector is finally heating up. TOPS recently made a huge breakout on no news whatsoever. Today's volume was 5,248,164 shares traded for TOPS, which came in second place to DRYS, which topped the list with 14,7722,221 shares traded. NM came in at number 8 on the hit parade today, with 1,388,313 shares traded.
4) Now, let's review NM's 5 minute chart over the course of the last five trading days. (This is what sold me on opening a position.) NM pops up on Monday morning, and levels off on a bedrock of support in the $1.00 - $1.04 range. Thereafter comes a nice thrust, after which NM pulls back to form a second bedrock of support, forming a succession of narrow-range bars in the $1.20 range.
As I look at all of this, I see a great setup. But, there are two schools of thought on such matters. There are those who think that buying a position is "gambling," meaning they believe that the odds of it going either up or down from here are approximately 50/50.
I think that all of the information I have just laid out - taken together with this chart - give a probability of NM moving higher rather than lower, and that the odds greatly favor an upward movement rather than a swing to the downside. It is to me a "high-probability trade setup," to borrow from Tim Knight.
Sighting: Jones Soda among other 7-11 products.
The private 7-11 brand of products continues to grow, and now includes a line of potato chips and other such snacks prominently displayed near the registers.
As the company continues to construct larger, more modern storefronts, the offerings are expanding to include real meals, such as sandwiches, hot dogs, and pizza. I can say with some confidence that the 7-11 pizza runs head-to-head with Little Ceasar's, which it rather closely resembles.
It's a shame that 7-11 is a private company, inasmuch as we cannot invest in its future prospects. We can, however, invest rather inexpensively in one of their in-house brands, co-branded with Jones Soda. The displays are now becoming ubiquitous.
I have to laugh at those critics who ask me why I bother with these stocks when there are "real stocks" to be traded. As of July 13, American Bulls' writeup said: "The previous BUY signal was issued on 06/13/2016, 30 days ago, when the stock price was 0.1592. Since then GGAZF has risen by +67.71%."
I've enjoyed a measure of success exceeding 45% in JSDA, and over 55% in MGT (a play I caught late) over the course of the last few weeks. Have any one of the blue chips on the Dow produced such gains over an equivalent amount of time?
Launch of Jones Birthday Pack at Sam's Club.
According to a recent article on the Business Wire, Jones Soda has "announced the release of a Birthday Party themed Variety Pack featuring limited edition Birthday Cake Soda and available exclusively at Sam’s Club."
The pack will be available at select Sam’s Club locations in Arkansas, Colorado, Connecticut, Georgia, Kentucky, Massachusetts, Maine, Michigan, Mississippi, New Hampshire, Ohio, Texas, Utah, Oklahoma, Kansas and Virginia.
It may not take as long as until next year, however, as I said in posts 1304 and 1302, keeping an eye on the MACD and other indicators should serve to better time an entry. The 40 week moving average is crucial on weekly charts, and it would appear that Fib support may be lining up alongside that average.
There is such a thing as buying the right stock at the wrong time. I'd suggest just allowing it to continue inching downward until such time as the support zones are fully established, and pick the low hanging fruit when it is ripe for the picking.
BoilerRoom asked: "MGT this company is no joke wonder how high it will go?"
For a pseudoscientific analysis of how high it may actually go, I would refer you to the charts on display in Post 12453, wherein both daily and weekly price projections are provided by Point and Figure charts.
MGT buy signals now on the P&F charts.
In case anyone missed it, on June 29, MGT printed a Double Top Breakout on the daily Point & Figure chart, with a bullish price objective of $6.00.
On the same date, the Weekly P&F chart similarly printed a Double Top Breakout. This is very unusual. Be that as it may, the bullish price objective on the P&F weekly is $15.19.
Of course, these charts come with no warranty, express or implied.
Fib level appears to be holding.
Here's a follow-up to the chart I'd posted in message 300. I have highlighted the three primary areas of interest to watch to see if that critical Fib level holds. If indeed it does find support at that level and give us a turnabout, all that it was doing was pulling back to allow those late to the party to hop on board.
Click to enlarge
Thanks Jimski for the information regarding Canadian stocks and finding them on Stockcharts.com. Now I'll have to see how my US broker handles the transactions.
Right now it's hard to tell whether EGTYF is being generous and giving us a pullback, or if it's running out of steam. Let's hope it's the former, because this has been a beautiful run!
I would like to thank MisterEC for sharing his perspective. Although I may be a bull on this stock, and he may be a bear, I always manage to derive some benefit from his thoughtful analysis.
It is no secret that I consider JSDA to offer a long opportunity, for technical and fundamental reasons, albeit my take on fundamentals is more based on what I see on a day-to-day basis in the field, rather than on the balance sheets.
I try to weigh the potential of having multiple faces in a convenience store that has over 11,000 locations nationwide, and of the potential of being co-branded among the 7-11 family of products, which would appear to have gained general acceptance. I say this because it would appear to be expanding both in its offerings, and in the amount of display space dedicated to it in the stores. I don't know that any analyst has found the means by which to measure that potential. (Of course, there is also the potential for global expansion, but we don't know what the potential for that is, at this point in time).
In the business world, there are many things that are difficult to quantify. What is the true value of a Super Bowl ad? If you are Coca Cola or Pepsi, the boost in sales may be readily apparent. If you are a retailer, the increase in sales may be spread out over several quarters. If you are a car manufacture, measuring the impact of the brand awareness and goodwill that you may have generated with such an ad may take years, as people generally don't rush out and buy a new car based on even the most creative of television ads.
Getting back to JSDA more specifically, What is the value of co-branding? I can readily think of some instances in which outright mergers didn't work very well at all. The Amazon.com/Toys r Us alliance; the merger between K-Mart and Sears; AOL/Time Warner; Chrysler and Daimler; General Electric and Honeywell International. But this is an entirely different matter. Jones Soda has, in effect, become part of the 7-11 brand of products. And, as 7-11 is privately held, they are under no obligation to report sales.
On a related matter, I can't help but notice how well Dollar General and Family Dollar appear to be doing since going private. Much like 7-11, they seem to know just where to position themselves.
Convenience comes at a price.
Let's compare apples to apples.
Chris Fraley of InvestorPlace Media notes in a recent article, "PepsiCo, Inc (PEP), not Coca-Cola, has been the better soda stock for some time now. Over the last five years, Pepsi stock has returned 53%, well ahead of the 35% return in Coke stock. In the last two years, PEP is up more than 21%, while KO has returned less than 13%."
That's all well and fine if you're a "slow and steady wins the race" kinda guy who likes all of those blue chip stocks buried in Mutual Funds.
As for me, I prefer to take a more hands on approach to things, and, as a result, when I checked my brokerage account this afternoon, I found that I was up a tidy 38.93% in my JSDA holding. This is not a bad result at all, particularly when one considers that I only bought into the stock in the Spring of this year.
It seems that in no time at all, I'd handily trounced Coke's five year return, and I'd handily beaten both competitors' two year returns - and by significant margins.
CarlCarlMcB wrote: "Somebody should flat out buy this co."
Perhaps someone will. I, for one, would likely be pleased with that result. I would imagine that potential is being priced into the stock at some level already.
This is a discussion group dedicated to Jones Soda. Therefore, I am constrained to limit my analysis to a related stock. Find here the entire trading history of Cott Soda, one of JSDA's primary competitors.
The NASDAQ site (where I went first because COT trades on the NYSE) is currently offline for maintenance, so I'm pulling the company description off of Finance.Yahoo.com, which says:
"Cott Corporation, together with its subsidiaries, produces and sells beverages on behalf of retailers, brand owners, and distributors worldwide. Its product lines include carbonated soft drinks, juice and juice-based products, clear and flavored waters, energy drinks and shots, sports products, new age beverages, ready-to-drink teas and alcoholic beverages, beverage concentrates, liquid enhancers, and freezables, as well as hot chocolate, coffee, malt drinks, creamers/whiteners, and cereals. The company offers its products under various retailer brands, which include Cott and Red Rain brand in North America and the United Kingdom; Stars & Stripes, Vess, Vintage, So Clear, Shanstar, Harvest Classic, Chadwick Bay, Exact, Alhambra, Belmont Springs, Deep Rock, Hinckley Springs, Sparkletts, Crystal Springs, Kentwood Springs, Mount Olympus Standard Coffee, and Javarama brands in the United States; Emerge, Red Rooster, MacB, Carters, Calypso, Mr. Freeze, Jubbly, Suso, Cafe Nueva, and Ben Shaws brands in the United Kingdom; Stars & Stripes brand in Mexico; and RC brand name in approximately 120 countries and territories outside of North America. It also provides contract manufacturing services. The company?s customers include grocery, mass-merchandise, drugstore, wholesale, and convenience store chains. Cott Corporation was founded in 1955 and is based in Tampa, Florida."
Wow - that's a real mouthful, but this company has been around for quite some time. The question is what is it really worth? Let's look at the chart, shall we?
Click to enlarge image.
The long term chart show two differences of opinion. There have been no splits along the way, and certainly some adjustment for inflation should be made to put that initial peak of $37.75 into perspective.
According to the CPI Inflation Calculator, $37.75 had the same buying power in 1994 as does $61.19 today. Let's just say the stock traded at around the equivalent of $60 per share at the time, shall we? What calamity could have possibly driven the price down to $5.00 in no time at all, and to a subsequent low of only $1.37 in early 1999?
Well, as we can see, good fortune returned during late 2004, when the stock hit a high of $31.65. It was not a long-lived high, though. Before you know it, the stock was back down to $0.58 in late 2008. Since then, it's inched up to around $14.00 per share. What gives?
So, what is any stock truly worth? I would maintain that the chart is more a reflection of hopes, dreams, and aspirations on the one hand, and fear of loss on the other. Once trends begin, they may abruptly reverse, and continue on unabated in one direction or another, completely out of lockstep with the company's performance or potential for years to follow.
That JSDA has already gone through one high-price cycle does not concern me. The true questions are, 1) whether this is a true trend reversal, and 2) if so, where may it lead?
JSDA: So when will it make a move?
I know. It's looking like the slow boat to China because the setup is on the weekly scale, rather than the daily. Keep your eyes on that MACD, because it is somewhat analogous to a watch spring. That, along with some other indicators, should tell you just when to buy in, if you have not already done so.
Mind you, this is the sole opinion of a chart based technical trader with a long bias toward Jone's Green Apple Soda.
I agree with your general assessment. Unfortunately, EGTYF is not available for charting on Stockcharts.com. (I'm finding this to be the case more often these days than it used to be).
I find the Edgar-online charts available at OCTMarkets.com to be sufficient for most purposes. They are quite configurable, and certainly more robust than the ones offered here. (They are not as feature laden, but they are far easier to use).
Edgar-online via OTCMarkets.
I might also suggest https://www.tradingview.com/ as being well worth a look.
The OTCQX and OTCQB are much to be preferred over the Pink Sheets, which include a wide variety of stocks, some of which are gray market, or dark and defunct.
The OTCQX goes so far as to offer Morningstar ratings, and in a number of cases the Morningstar reports may be downloaded free of charge. While they offer no warranty, all things being equal, the odds of your position blowing up overnight in a rated stock are at least somewhat diminished when referenced against most pinkies.
I have had some measure of success day-trading pinkies, so I would not discourage it completely, but I generally don't dare take my eyes off of them, and very seldom hold them overnight.
JSDA Sighting: Oh no! Only one blue left!
There are two inferences that one may reasonably draw from this trend. 1) Either they are phasing out this product because they already know that it is a loser, or, 2) They are not replenishing them quickly enough to keep up with the demand.
I suppose your interpretation may help to determine whether you're bullish or bearish on JSDA's prospects as an in-house 7-11 brand.
I'll say this much. I never saw an actual Purple Beverage (PPBV - now dark and defunct) product on a shelf. Seeing the product I'm investing in serves well to inspire at least some measure of confidence.
Don't you even conduct a little bit of research into a stock? Here's where you'll find your answer.
www.otcmarkets.com/stock/INAR/quote
Another very sweet setup.
Remarably similar to some others that have been quietly breaking out lately. This one should start seeing more interest soon because the 200 day moving average that so many people look to for guidance is now rising. How nice of it to accomodate us by doing that just when it did.
Only about two weeks out of a flotsam and jetsam base, with volume and accumulation on the increase, and the price is in a clear uptrend. It's on the OTC QB rather than the Pink Sheets, and it has three stars from Morningstar, so it isn't too likely to blow up overnight. Who can ask for anything more?
Click to enlarge.
I wholeheartedly agree with the sentiment that this is a "perfect storm chart."
I don't give great weight to proposed lawsuits in which attorneys are trolling for lead plaintiffs. I don't give much weight to Zacks either, particularly in light of its announcement of March 17, 2016, that said: "The stock has moved higher by 29% in the past month, while it is also above its 20 Day SMA too. This combination of strong price performance and favorable technical, could suggest that the stock may be on the right path." Zacks thus gave it a #2 (Buy) ranking. (In case you're wondering, the stock closed at $4.40 on March 17. How Zacks managed to overlook the declining 200 day moving average looming overhead is anyone's best guess, but that's all just random noise to me).
In any event, the charts as they look today are quite promising. Indeed, setups don't get much better than this. Here is a 15 minute chart adorned in Heikin-Ashi candles and a moving average ribbon courtesy of TradingView.com.
Click chart to enlarge.
This stock is truly an interesting find.
Following the market close on Thursday, June 16, 2016, the Point and Figure chart - set to automatic scaling on Stockcharts.com - generated a reversal signal. That reversal signal went largely unnoticed because the P&F scanner uses a default setting that did not generate a signal.
By the time the Stockchart's signal was discovered, another system had already flagged it. Americanbulls.com - a site that generates buy, sell, and hold signals based on candlestick patterns - recently generated its first-ever signal for this particular stock. As Americanbulls described its signal on Friday, June 17: "Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 06/13/2016, 4 days ago, when the stock price was 0.1592. Since then GGAZF has risen by +16.21%."
Sixteen percent over four days is somewhat remarkable. Finding a first-ever signal at Americanbulls is more remarkable.
Before Americanbulls flagged it, another system apparently running on auto-pilot had pegged it as a bullish stock. That would be the stock analysis at StockTA. Priced at only $0.1850, this play offers the potential for explosive gains. But will it deliver? Time will only tell.
Not necessarily a missed opportunity.
Take heart. The only opportunity that you may have missed is hopping on board during what are apparently the earliest stages of a trend reversal. The Big News is already out, and in all likelihood there is no unanticipated Big News on the horizon. Let's recap what the big news was.
Jones Soda recently revealed its financial results for the quarter ended March 31, 2016 in a scheduled conference call held on May 5, 2016. The takeaway from the conference call was that for the first quarter of 2016, JSDA reported revenue of $4.3 million, which was significantly up over the prior year's first quarter revenue of $2.9 million. This brought the company's results up 48% when compared quarter to quarter.
In summary, a comparison of the Quarters ended March 31, 2016 and 2015 revealed that:
* Revenue increased 48% compared to last year.
* Case sales volume increased 73% as compared against the prior year.
* Gross margin increased to 27.4% of revenue, compared to 25.6% last year.
* Net income of $49,000, compared to a net loss of $278,000 last year.
Much of this came about as the result of a deal inked with 7-11 bringing Jones Soda into about 11,000 stores nationwide. Why is this Big News?
An article by Alice Hines in the Huffington Post, entitled "7-Eleven Opens Thousands Of New Stores, Aims For World Domination," explains that "the favorite retailer of highway road stops, street corners and late-night Big Gulp sodas is quietly taking over the world. In 2011, 4,600 7-Eleven stores opened, bringing the retail brand to more than 46,000 locations across the globe."
She continues on to explain that: "In today’s busy world, convenience has become a universal value. While other retailers struggle to export their store concept away from home, 7-Eleven has expanded into 16 countries."
This article is well worth reading to understand the potential of landing inside of the chain with a co-branded item. But then I'm not as big on the fundamentals as I am on the charts. What does JSDA's chart tell us?
The setup is on the weekly chart. Look closely at the MACD and its histogram to try to gauge the recent pullback along the time axis to project when it may end. (Bear in mind that as summer approaches, trading invariably gets a little leaner. The markets slow down, and stocks are generally less active, and less volatile.) That inverted MACD being well above its centerline is significant. Watch and wait for the lower histogram to begin rising, and try to time your entry in such a way as to get in just before a crossover signaling the next move upward. Look at where the histogram was prior to the last upward move to best time an entry. Keep your eyes also on the 40 week moving average, as that is providing support.
If the stock has indeed reversed its trend, then it stands to reason that the next major move will be to the upside. If this is so, the current pullback provides a relatively safe point of entry. This is particularly so as the histogram approaches its zero-line crossover, and the trading bars begin to narrow.
Of course, there are no guarantees. It is all a game of probabilities.
Click to enlarge chart.
OTC Markets Group (OTCM) trading history
Below is a chart that displays the entire trading history of OTC Markets Group (OTCM). As one can readily see, with the exception of a recent pullback - one that has fully rebounded - the overall trend has been upward.
I did not add any technical indicators to this chart. Instead, I display each dividend that had been paid out to shareholders to date.
OTC Markets Group (OTCM) is not a scam.
In any analysis of the Over the Counter Market, it is essential to break out the individual tiers. According to a US Securities and Exchange Commission publication entitled Microcap Stock: A Guide for Investors, these three tiers are:
* OTCQB - includes the securities of companies that are current in their reporting to the SEC or a U.S. bank, thrift or insurance regulator;
* OTCQX - reserved for the securities of companies that are current in their reporting to the SEC or a U.S. bank, thrift or insurance regulator, or, in the case of companies that are not required to report to the SEC, meet and remain current in their reporting obligations to OTC Link under its proprietary Alternative Reporting Standard; meet certain eligibility requirements; have audited financial statements; and partner with a third-party securities attorney or investment bank that reviews disclosure and acts as a professional advisor; and
* OTC Pink - an open marketplace for a broad spectrum of equity securities, with no financial standards or reporting requirements.
There is, however, much more to it than that. OTCMarkets has individualized tiers both within and alongside of the Pick Sheets classification. By way of example, they provide those stocks that are current in their reporting obligations under one or another approved method with a notice to that effect in order to better inform potential investors. In those instances in which a particular stock remains listed with the company having filed for bankruptcy, a "Q" is appened to the stock's ticker, and a notice is clearly posted with the stock's quote, cautioning investors about the potential dangers of trading in companies facing bankruptcy.
They also identify such things as "grey market" and "Caveat Emptor" securities, warning potential investors that little - if anything - is known about the current operations of the companies behind the tickers. And, when the SEC orders a halt to trading and the providing of quotations for a specific stock, OTCMarkets fully complies, and posts a notice to that effect,
If a company submits information that is both audited and signed by legal counsel, the exchanges have no alternative but to act on that information as being true. No stock exchange - whether it be the OCT, NYSE, or the NASDAQ - is obligated to vigorously investigate the claims set forth by accountants in the reports that companies file. That job falls on the SEC, FINRA, and other watchdogs.
Neither Enron nor Arthur Andersen, nor any exchange can be held to account for the loss of any person's life savings. Sadly, there are many would-be investors out there of the opinion that even after a particular stock goes parabolic, with its RSI screaming "get out while you can," they can still hop on board at the very pinnacle of the run, believing that the stock will continue to rise in such an way in perpetuity.
History tells us that this is not true.
I agree that NMKEF looks ripe for picking.
While it certainly would have been nice to have caught this one when it first broke into its uptrend about four months ago, sometimes one has to settle for a pullback to provide the low hanging fruit.
Accumulation is strong, volume is more than adequate, and the trend is quite clear. It has the distinct advantage of being among the OTCQX tier, which is certainly to be preferred over the Pink Sheets. For those with an interest in fundamentals, Morningstar was kind enough to have issued a "Quantitative Equity Report" on June 06, 2016. It's free for the taking at OTCMarkets.com .
I see some others have the Stockcharts.com base covered, so here's the Edgar-online interpretation, which is something I'm getting used to now that I've figured out how to tweak it for speed and taught it to remember my preferred settings.