Friday, February 19, 2010

Bought Some Jamba Juice

I bought some Jamba Juice (JMBA) today at $1.66.  I've been doing some work on the stock and company, and I like what I see for the most part.  I'm not that familiar with the brand.  I've never visited one of their locations either, so maybe some people could chime in if they like it/don't like it as far as product goes.

They have an aggressive management group that is really looking to branch out and build the brand.  They currently operate 729 stores, and 511 are corporate owned.  They've been launching new products over the past year like various foods and hot beverages, and the goal is to become a more "anytime" attraction.  They are also getting more aggressive with franchising and marketing products to schools.  They just announced an agreement for their products to be offered Core-Mark, who services 24,000 convenience stores, and that's a big step for them.

The stock is fairly cheap, but this is really about a company trying to take the next step.  If these new products and offerings work, earnings are what are going to ultimately drive this stock.  They are sitting on a decent cash position, which should help them if the economy continues to struggle.

I did hear about this originally when Todd Sullivan was talking about it, but didn't look at it seriously until a few days ago.

Just took a small position to start.  We'll see how it acts.  Earnings are upcoming, and that should give us a little clearer picture, and at that point I may decide to add some shares.

Disclosure: Long JMBA

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