JSDA: Stock price fizzling, or a sparkling purchase opportunity?

The last 6 months for Jones Soda has been all but a major disappointment. Missed earnings, over-sighted expectations and insider trading accusations have weighed heavily on this alternative beverage company. JSDA was a favorite of mine last year. I’ve been watching it for years ever since around 2001 when I first tried the delicious Fu-Fu Berry flavor soda at a small scale local dairy. They had a great concept that was matched with an alternative cultural following that could take it to the top and for a minute, it did. With a little help from Jim Cramer of Mad Money, the stock reached a grotesquely inflated price of $32/share. Let me tell you, it’s all been down hill from there. People realized that this 185M market cap company was not worth $32 a share. Now just seven months after it’s $32 high, JSDA trades around $7/share. Will it keep going down? Or is JSDA a premium value investing opportunity? Here’s what I think:

The management has implemented new marketing moves - Sponsorship of the New Jersey Nets, and The Seattle Seahawks.
This play will be costly in the beginning (as we saw in the Q3 earnings report showing a loss of 1.5 million) but I truly think that these marketing tactics will be a huge turn around point for JSDA.
Jones Soda is playing with the big boys now. Coca Cola and Pepsi were previously the only companies battling for stadium sponsorship, and now here comes Jones. The last seven months have been quite a rough time for investors, but there is a light at the end of the tunnel. I see these sponsorships and expanded distribution taking effect some time around Q2 or Q3 of 2008. Until then, Jones Soda is overvalued at $7 per share, and I expect it to rest at $5.50 or $6 until the time is right. If you are looking for a long term investment this might be a great opportunity to keep an eye on and follow up with some good research. Keep in mind, I do not make recommendations to buy or sell, simply suggestions for stocks to look into further.