It occurred to me that real money is looking for far bigger ways to make dough than buying the common stock of any company, if our 93,100 members strong each just pony up a lousy $2 grand we all will all be set for life-- in smoothy's anyway. But seriously if I hit the LOTTO jackpot tomorrow I would buy this company- at a market cap of approx $150 mil we will simply buy it, close all the non performing stores then sell all the high prices real estate pocket the companies cash- a cool $44 mil hoard and when all the dust settles we will have for free the brand name, a lot of licensing possibilities and quite a few profitable outlets... think about it. This can be done. In the past six months Jamba's stock has swooned from $8 a share in September to close Wednesday at $2.76. Several factors contributed to the freefall. Last month the company reported fourth quarter and fiscal year 2007 results to the disappointment of the street. Analysts called for revenue to measure $64 million for the quarter and $327 million for the year. Jamba reported $54.5 and $317.1, respectively. The stock lost 15% in the session following the announcement. Jamba Juice has continued to languish, shedding another 10% over the last several weeks. A downgrade, by a Wedbush Morgan analyst, and the general fears of recession which have hung over the market in early 2008 bear some of the blame. At these levels Jamba Juice trades at just a .5 price to sales ratio using numbers from the prior twelve months. That's downright cheap, especially for an outfit sitting on $44.5 million and carrying zero debt. And though revenues did not meet expectations, the company still delivered an 18% increase over 2006 sales. While the current economic environment does not favor the company, the worst is already factored into the current price. In the event of a sustained recession, Jamba Juice would likely suffer. However, with $0.85 a share in the coffers, how much lower could the sale price recede? EXACTLY! LET'S BUY THE WHOLE DAMN THING!!! Who's In? ~ stoney
There's a reason for the decline in the stock. Someone told me his broker recommended it when it was $8 so I looked into it. The first thing I read was an interview with it's president? founder? who turned out to be a wishy-washy hippy who was obviously not business oriented. I almost shorted it right then but had funds allocated elsewhere and didn't bother. Wish I could find the link but it was months ago.
JJ has an exteremly tight margin per store and overhead is rising. You can only charge soo much for a smoothie and they have little else to offer. This is a nice concept, but they'll get smoked over time.
I can honestly say I've never been, but have seen their stores around. Is it fair to say that JJ is the starbucks of smoothies? If so, convenience stores, etc will errode their margin over the coming years like McD's and SB's
Guys $44 mil comes right back in the form of a FAT dividend. So that's a $100 mil plus you payed for all that real estate - I'm assuming they own the stores that might be a mistake. There is a new blank check company DSP I believe is the name. Can't find much about it but yesterday on Bloomberg they culled SEC filings for new investments by some big fund and they gave these guys a wad. No idea what they might by. I had one of those smoothys from Jamba it had ice cream in it and had probbly more callories than a Big Mac. There orange juicer machines they have are way cool though, not sure if they get the peel off- but the straight up juice is very good with ice so we work the pure juice angle with all the anti oxidants and new age crap and we.... Ah we could be buying Krispy Kream but they have so much debt.... This is a clean deal. ~ stoney
they don't look like they own any real estate according to the filing. Such a discretionary too, majority of stores are in California, the land of foreclosure. I think we instead look at collectively buying PLA. That would be NICE!!!!! Every member of ET would be at the annual meeting.
Papa lets really find the right target. Low price Loaded with cash from a secondary Sitting on a Copper mine or two in Ecuador.... I give you Corriente Resources! ETQ.....
The problem with that, for me anyway, is that I am now a commodity bear. I think the entire commodity complex has topped for several years minimum, so this being a commodity play, I would have to wait for many moons.
Doesn't high level of inflation insure some participation by commodities? We seem to be at commodity highs while the market is forecasting a recession. What up with that... that's a fed stoking hyper inflation... and a double dip set up for an eventual recession further out... and another leg for commodities or not? What do I know except that steel is often lumped in that group and aluminum and here indeed I like to play... ACH anyone? ~si