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 Juice. Their stock is trading around $10 a share. CHEAP! 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.