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.
News 
Market Data 
Discover 
Click to enlarge chart. 
