Jamba Juice: Finally a Break-Out
Mastery has been following Jamba since back in the day.
Just a year ago, we talked up a $3 price target for shares of the Juice-Maker.
Now we provide a fresh analysis on whether or not the stock will rise to all-time highs or bleed back down to 2011 levels.
While JMBA hasn't posted a profit since September of 2011, it is expected to post EPS of .07 a share in their upcoming Q2 earnings release, scheduled for August 15th.
Jamba has $19.26M cash on hand and no debt. But they need to do something about their negative margins, and fast. Which brings us to:
The company has begun a franchise model, and franchisees tend to be much better at operations than the food company itself - just ask Subway, Domino's, and Dunkin' Donuts.
In addition, JMBA has signed agreements to grow their international presence in places like the Philippines, South Korea, and the great white north - Canada.
But the real dough could start rolling in thanks to their licensing agreements to produce and sell consumer products such as smoothie kits,frozen yogurt, energy drinks, coconut water and energy bars. It's on like Donkey Kong.
Mastery Bottom Line:
Health Food Stocks like WFM, TFM, GNC, BNNY, and Jamba (JMBA) have all been in a bull market in 2012. It may be an investing fad, but Jamba really could be the next Starbucks - on every street corner, mall, and all the grocery stores.
A look at the Chart shows a parabolic move from $2 to $2.60 since the beginning of July. A little pullback is to be expected (and should provide time for us to get in on the bull flag). Look for a pullback to $2.45 but place a tight stop in case the overall market decides to crap out, in which case the "True Blood ripping-out-of-the-spine scenario" takes place, if that happens shares could retrace back to $2.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Dollar Pares Initial Gains, French Government Implodes | Financial Sense
- Ukraine Defense Minister Warns Of "Worst Conflict Since WWII", Shifts Forces To "Combat Full-Scale Russian Invasion" | ZeroHedge
- Key Events In The Coming Week | ZeroHedge
- New Technology Could End the Debate Over Pipeline Safety | Financial Sense
- A Look at the Coming 30-Year Inflation Cycle | Financial Sense
- Markets Set To Surge On Global Manufacturing PMI Bloodbath | ZeroHedge
- Inside the Market’s Mind: Debt, Growth and Politics | Financial Sense
The most relevant financial news and articles from the Internets
- Mario Draghi And The European Central Bank Can't Ignore This Chart | Business Insider
- Notable Mergers and Acquisitions of the Day 8/29... | StreetInsider.com
- Amazon's Hit Man | BusinessWeek
- What ABC’s 30-Year-Old ESPN Purchase Teaches Us About Twitch | TheStreet.com
- Should You Worry About That Mole? Here's How To Tell | Business Insider
- Man Accused Of Leaking Naked Celebrity iCloud... | Business Insider
- Why J.C. Penney's New Brooklyn Store Is Only Part of the Revival | TheStreet.com