Jamba Juice (JMBA) will bounce

Not to worry, now that Jamba, Inc. (Public, NASDAQ:JMBA) is down to a new 52-week low at $5 and change, we've finally seen a bottom. You could either buy a fresh blended-to-order smoothie at Jamba or one share of their stock, they're selling for the same price.

Last week (10/25) Jamba upset Wall Street and missed their expected numbers. Third quarter fiscal year 2007 preliminary unaudited total revenue of $83.2 million, up 23.5% from $67.4 million in the same quarter a year ago. For the quarter ending October 16, 2007, system-wide same store comparable sales increased 3.3% and system-wide store count increased by 34, bringing the total store count to 672.

Analysts polled by First Call/Thomson Financial expected Jamba to report revenue of $84.62 million.

However for Q3, company-owned stores sales were $81.0 million, up 25.4% from $64.6 million for the same quarter a year ago. Company-owned same store comparable sales increased 3.8% and company-owned new store count increased by 24, bringing the number of company-owned store count to 470. That's great news for the Juice makers who make their living from selling us something we are too lazy to make in our own kitchens. Come on, we all have blenders, yet we still run out to get our 'juice on' at Jamba Juice.

Here's where it gets fun, last Friday (10/26) Morgan Joseph reiterated their "buy" rating on Jamba Inc but reduced their estimates and set a target price of $13, down from $10. The last two years for Jamba are rags to riches then right back to rags again:

Fellow Masters, 17% of the Float is short on JMBA and the same guys that ran the stock down will ride it back up and cash the register along the way.

Over the next seven years, Jamba Juice is positioned to grow revenue at a mid-to-high teens CAGR (compound annual growth rate) through 10-15% annual unit additions and comps in the 3-5% range, while driving 25% EBITDA (earnings before interest, taxes, depreciation and amortization) growth as it leverages G&A (general and administrative costs).

Jamba is not your long-term investment story, cash in and cash out on the bounce. Maybe they'll sell the company, who knows, with the share price beat up so bad it's good news for 'stand on the sidelines investors'.

Article by Eric Cheshier

Contributor at TheStockMasters.com

Disclaimer: The Author does not hold any positions or shares in the securities mentioned in this publication.

Coming soon to WallStNewsletters.com and the next member of the Full Monte: