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
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