Reeds Inc. (REED)

[gfp927z]

Slojab, I figure it might briefly spike down to the 200 MA, but doubt it will stay there for long. The company is just too solid to go into an extended funk IMO. It's a great buy and hold type stock.

Reeds could actually benefit from a larger float, to smooth out the daily volatility and illiquidity. But rather than issuing more stock, Chris Reed prefers to fund growth organically out of revenues. That's a noble strategy, and has the advantage of not diluting his own large % ownership of the company, but I wouldn't be averse to seeing a modest equity offering to pay off the company's existing debt. Why pay such high interest when you could issue a couple million shares and eliminate the debt entirely. But either way, he'll be able to pay down/off the debt from Kombucha revenues. I'd like to see a totally clean balance sheet and a somewhat larger float would also help smooth out the daily stock movements, which some days can be on the jarring side.