Jones Soda (JSDA) on Wallstrip

Panic buying? Parabolic gasp? Buyer Beware?

Today we look at something completely different….’Stocks Gone Wild’ on Wallstrip . Yes we are late to this party, no I am not buying here nor are we recommending a purchase or sale today. Today, it’s some goofing around on the street and a reminder that the Soda and Energy drink market is a party/market segment that others will be joining as small brands flex their muscle on a global scale using due in part from the web.

From Lindsay’s simple street test, one can see that few have even heard of Jones Soda on the street, but people long the stock may name their first born Jones and those short may be suicidal.

There is much to learn from a ‘Stock Gone Wild’, because these happen more often than you think. The price action looks the same as it accelerates to the upside. If you are a trend follower, you can not only catch these, but enjoy the runups if you have consistent entries and disciplined sell rules.

What the hell is going on at Jones Soda? Is it the new hires?…please. Is it the must have soda with sugar cane?…don’t be a shmuck. Enjoy it and ignore the sexy headlines. ‘Rock Your Stock ‘ points out that …with their recent conversion to cane sugar and their distribution deals with Wal-Mart and Kroger, not to mention their long-time presence in Starbucks, Jones can’t miss.

Only WHEN the price breaks will you know who, what when, where and why? As Brian explains in perfect detail, Jones is experiencing an amazing ‘short squeeze ‘.

Jones Soda is a lesson in forgetting about price of a stock when buying trends and focusing on entry and money management. I rarely buy stocks under $10 dollars. But, even if you had waited for a $10 all-time high entry, you would be sitting on a nearly a triple since the beginning of 2007. Most investors would have ignored the buy, saying it has already run from $.30 in 2004. I wish I had not ignored the breakout myself.

Here is the Google Finance start page on Jones Soda . If you look at related companies you will notice lot’s of other strength. The FLY has had daily commentary on energy and juice monster Hansen’s for quite some time.

I do have one opinion as an end thought…Energy Drinks are the new water for our youth.

Disclosure – No Positions

PS – My friends at Crawdad created a Jones Soda Listening Post and this is what they are picking up:

Tone and focus for Jones Soda Co. are both consistently trending upward over the last 30 weeks, indicating very good blog buzz. Tone in the previous 30 days is somewhat down from the 30 days before that. Negative posts were mostly unfocused, and did not talk about Jones Soda brand negatively. Instead it was just mentioned (often in positive terms) in the context of other things being discussed negatively. For example, some posts noted that Jones Soda was using cane sugar sweetener while talking about the negative effects of high-fructose corn sweetener in competing products. The most positive posts had high focus, talking about specific positive attributes of the brand. In particular customized labels and label picture competitions got a lot of positive talk. Other items that popped-up in the positive posts were the Green Pea flavored soda and the company’s carbonated candy. Also there were many positive posts about company stock and financials.