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08/10/16 11:40 AM

#10636 RE: scstocks #10631

SC, REED is looking like it may have put in a bottom. I listened to their recent earnings conference call and it sounds like they've turned the corner after the production issues from last Fall. They'll have the production upgrades completed by year end (tripling production capacity), and are winning back store shelf slots that had been lost due to the production snafus of late 2015.

They're expanding into the soda fountain space which will be the first time a craft-brewed soda will be available in this way. They're reportedly in negotiations with one of the biggest restaurant chains in the US, which has the potential to produce a quantum leap in sales and revenues for Reeds. With the stock so beaten down and the market cap having fallen below annual revenues, REED looks really cheap from a longer term perspective.