Irrationally mad decision making to obtain the American Dream.

Jamba Juice Inc. the next Starbucks –

I feel Jamba Juice is the next Starbucks trendy type company that is focused on selling a specific products happy consumers love to spend their money on.  Here in Honolulu, Hi there at least 10 Jamba Juices I know of on every major corner or strategically placed right next to a Starbucks in shopping centers.  I commented this on WallStrip.com’s blog about Jamba Juice.  They say its a joke and going to go under I say the complete opposite.  They need to take a vacation to Hawaii to understand why I say this.  I’m in the military and we people in the military buy 6-10 large Jamba Juice smoothes a day.  Well, I don’t because I dont’ like to spend money, but all my buddies and workers love to buy up Jamba Juice smoothies.  Jamba Juice has a quality product, it’s trendy, fun, and “cool”.  I call that a recipe for success.  Jamba Juice is the smoothie of choice here in Hawaii.  Even in my local city of Virginia Beach, VA there are Jamba Juices in all the major strip malls.  I read the financials on the company and it said profit dropped.  You know even Starbucks has hit hard times and hasn’t always profited.  Jamba Juice is still in the start up faze.  I read on their company website they only have like 562 company and franchised stores.  That is nothing when you compare it to giant Starbucks.  I feel there is plenty of growth for Jamba JuiceTheir stock is trading around $10 a shareCHEAP!   Though even I feel it could go lower before it rockets off.  I feel they need to build their store base more.  But would I buy it right now?  Hell yes!  I wish they had leap year options on it.  I’d buy call options 2-3 years a head.  I feel this stock is seriously going to $30 by 2008 building more stores and placing them next to Starbucks so the consumer traffic is already there.  As for now I’d see if the company performs better and starts to profit and increase stores.  If leap options become available I’ d like to add them to my portfolio.  Clearly as shown below the stock has been sold off hard around 20%.  With some solid positive news it could really turn the price to the upside once investors start to recognize the real value of the small company.

jmba-233.JPG

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7 responses

  1. You say $10/share is cheap. Isn’t market cap, or P/E or almost anything else a better measure of “cheapness”? Price per share is nothing but smoke & mirrors. If they do a 2-for-1 split right here does that make the stock twice as cheap?

    December 7, 2006 at 3:43 pm

  2. You are correct saying $10 isn’t cheap in your opinion, but I feel with Jamba Juices growth potential outways those technical “cheapness” to the stock and I’ll restate it as “undervalued” being so small and growing with high younger consumer popularity.

    December 7, 2006 at 11:48 pm

  3. Jon

    Your Frame of reference is way off. Do you know how many other smoothie places there are out there. I’ve lived in towns dominated by Keva Juice, the exact same as Jamba Juice. do you know why there is a Jamba and Starbucks on every corner in HI? Becuase the HI Jambas and HI SAtarbucks are ownered but he same company. I think Jamba is great aswell, but there is tomuch comp and thier margins are too small.

    December 21, 2006 at 8:13 pm

  4. Jon,

    I think you are right about an owner owning both franchises in Hawaii how they are set up everywhere together. One thing I do know is that Jamba juice is like McDonalds here and that IS a big thing to take notice of. If Jamba Juices name and store appeal picked up in the mainland it would become a Starbucks specialty trend.

    December 21, 2006 at 9:35 pm

  5. Ed Harrison

    In my opinion, Jamba Juice (or JJ as my kids say) will be the next great American brand. The stock is a steal for long term investors. Yes, I own it.

    Ed

    January 15, 2007 at 10:13 pm

  6. Hi Ed,

    I do not know where you are located, but thanks for the comment. I think many “numbers” investors and traders don’t see the value in Jamba Juice right now because it isn’t biggest company with the best profiable numbers. One thing I do understand, at least in Hawaii, is that Jamba Juice is like the healthy fastfood of choice. When I was on the mainland a couple of years back I remember it slowly picking up in Virginia Beach, the whole smoothe craze thing. I think long-term it could be a $20-30 stock if the keep increasing stores and the people that do love it spread it word of mouth collecting new customers that will be long-term devoted Jamba Juice customers.

    January 16, 2007 at 6:12 am

  7. Ed, I’d also like comment although you already own it right now I’d wait to buy more until I see better figures. Although I like the image and the product the company hasn’t been able to be positive year for the year. I think this will make its outlook and how its viewed as a more long-term investment. Since I viewed it last it has turned up some on the charts. The company is purchasing shares right now, but there is still 75% shares float. I’ll update JMBA on my site as news and earnings comes in.

    January 16, 2007 at 6:38 am

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