JMBA undervalued

Discussion in 'Stocks' started by tradestrong, Nov 22, 2007.

  1. I told you why I'd freak'n pick it. Because the price is below book value per share. The company has realized that it needs to cut costs, (which it has the last quarter), and the "real" PE is quite low.

    Do you have any fundamental reasons why you think it's a piece of garbage?
    #11     Nov 23, 2007
  2. Good call! I actually am pissed at myself because I was going to place an order this morning at work and as soon as I walked in, I was slammed with problem after problem and I forgot to put in the order in, and the damn thing bounces over 15% today!!

    While I still think it's a good long-term investment, I've also been trying to incorporate more "trading" in stocks that I'm not afraid of holding, so I was going to try and play a bounce on this.
    #12     Nov 23, 2007
  3. Not a long term play and I wouldn't chase it now. I would be done with the trade.
    #13     Nov 23, 2007
  4. JMBA would be categorized in the "luxury spending" part of this possible recession economy.

    things like JMBA are the first ones consumers cut in their budget. kinda scarry.
    #14     Nov 23, 2007
  5. Not true. Food, restaurants and other food/beverage types of industries are relatively recession proof. Restaurants do well in any environment relative to other industries.
    #15     Nov 23, 2007
  6. yeah but JMBA makes juices that cost 4-5 dollars. There are many alternatives to JMBA that cost twice as less.

    I would categorize it with starbucks, there are 99 cent alternatives.

    #16     Nov 23, 2007
  7. People will buy coffee and other "expensive" food items no matter what. They may seem expensive to you, but I would also imagine that you probably don't buy those items frequently now. People who do buy those items more often won't get the "alternatives" just because of a recession. They just really aren't expensive enough to begin with.

    BTW...I seriously doubt we will really go into a recession. Jobs are plentiful and will continue to be so as long as the dollar is weak. Exports are through the roof and the GDP is rising.

    If anything, inflation is a much more serious worry. Items that cost $5 are quite inelastic. People aren't going to stop buying them because inflation moves the price up 50 cents.
    #17     Nov 23, 2007
  8. people will not stop buying them, people will stop buying them less frequently.

    and this will affect the bottom line with companies such as starbucks and jamba.

    #18     Nov 23, 2007
  9. Let me say off of the bat that I own Jamba at $4.50. It got killed after that, but I have no worries about it at all. I've been investing for a long time, and I've seen this before.

    Jamba is a fast growing company trading below book value. It's not even a matter of if it's going to jump, but when. And when is likey as soon as the fear selling calms down.

    Jamba is not one of those $3 spec stocks of a little known company. Jamba is THE leader in the smoothie industry and one of the big names in the health food industry, which will grow indefinitely.

    For the guy who says he's never had one, that's cool. I've never eaten at Jack in the Box, but I know it's a popular place. In California, where I live during most of the year, Jamba is huge. People go to Jamba like they go to starbucks or doughnut shops in most places. If you want a healthy treat, Jamba is the first place on peoples minds. Of course, in So Cal healthy eating has long been a part of the culture. That's starting to make it's way around the country.

    Jamba has an elite management team. They've had tremendous growth (slowing it down a bit is not a bad thing). Their sales continue to rise (even if you haven't had one yourself). Even their same store sales rose almost 4% in a slow economy. And, they have a new line of products coming out at the beginning of next year.

    I'm not trying to convince anyone. Really. I just see so many negative answers to your question by people who obviously haven't followed the company. Many stocks are falling due to fear. If you judge by that, you may as well get rid of Cisco, JC Penney, Starbucks, etc.

    A company like this, selling at this price is a give me in the long term. In the short term, it could fall some more, or it could jump by 40% tomorrow. It's hard to say. I grabbed it when it was just too good not to. It fell. I wish I had waited, but I'm not upset. I've learned that if you buy a solid company at a good price, you'll be happy in the end.

    Jamba will hit $8. It could be in three months, or in two years (if next year's economy is really that slow).
    #19     Nov 27, 2007
  10. piezoe


    1 banana
    1 scoop soy protein (unflavored)
    1 TBS toasted wheat germ
    5 frozen strawberries + 10 frozen blueberries
    1/2 cup orange juice
    1/2 cup skim milk

    blend on high
    ~ $1

    #20     Nov 27, 2007