Sunday, March 11, 2007
JSDA and BABB
Jones Soda (JSDA, sec) jumped 22.8% on Friday to $17.13 on news of a 15% increase in revenue over the past year and earnings which increased to 8 cents per share for Q4 (more than 10% of it is from interest income). Their operating cash flow seems a bit weak. In the past two years, cash flow from operations has been $656K and $881K respectively (vs $4.6 million in earnings in 2006 and $1.3 million in 2005).
They took in $28 million from a PIPE in 2006 and no doubt they have great plans for growth. Personally, I can't drink much of their soda. It's too heavy.
Big Apple Bagels (BABB, sec) announced a quarterly cash dividend of 2 cents. The stock remains under a dollar. I was somewhat impressed by how they've run the business over the last 5 years. It might not be growing, but they're managing it for good cash flow.
I just think it's interesting to compare these two stocks.
There are a lot of reasons to like Jones Soda more than Big Apple Bagels. It's growing. It seems to have a glowing future. Is it worth over 17 times more than BABB? Personally I don't think so. This is what a lot of people consider a "growth" vs "value" thing, although Buffett made a very good argument for why that's a bogus difference.
They took in $28 million from a PIPE in 2006 and no doubt they have great plans for growth. Personally, I can't drink much of their soda. It's too heavy.
Big Apple Bagels (BABB, sec) announced a quarterly cash dividend of 2 cents. The stock remains under a dollar. I was somewhat impressed by how they've run the business over the last 5 years. It might not be growing, but they're managing it for good cash flow.
I just think it's interesting to compare these two stocks.
There are a lot of reasons to like Jones Soda more than Big Apple Bagels. It's growing. It seems to have a glowing future. Is it worth over 17 times more than BABB? Personally I don't think so. This is what a lot of people consider a "growth" vs "value" thing, although Buffett made a very good argument for why that's a bogus difference.
// posted by Bruce @ 9:08 PM 
