Jamba Inc (NASDAQ:JMBA)

CAPS Rating: 3 out of 5

The Company offers a variety of fresh blended-to-order smoothies, fresh-squeezed juices, baked goods and snacks through retail stores.

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Player Avatar paradigms (28.97) Submitted: 9/26/2011 2:45:12 AM : Outperform Start Price: $7.50 JMBA Score: +60.96

I've been a fan of Jamba Juice, Inc. (JMBA) for years and occasionally stop in for a Strawberry Whirl fruit smoothie. Yet I deferred any serious investigation of JMBA as a potential investment because I figured that the recession would result in consumers forgoing (or at least significantly reducing) their consumption of JMBA's products. Well, JMBA's share price did get squeezed during the recession, but in my mind, that just means that JMBA is now a sweet deal for savvy investors.I'm a huge fan of Peter Lynch and his seminal book, 'One Up on Wall Street' because in it, he advocates investing in companies whose products you understand and use. Well, JMBA has established itself as the market leader for smoothies, and given that ours is an increasingly health-conscious society, I think JMBA is poised for growth in coming years. JMBA opened a location at my alma mater fairly recently, and I know it has a presence on other college campuses as well. I like that it carries no debt -- 0.00 debt to equity and long-term debt to equity ratios -- and like the fact that it posted positive EPS for the first time in seven (7) quarters.JMBA is also expanding overseas -- so far it is only in two (2) countries -- and has focused on increasing its number of franchised locations, so I think this might end up paying off in the long run. Finally, JMBA's share price is trading at basically a two-year low, and I think its growth prospects are starting to improve; though I may be a bit early, I'm ready to give JMBA a whirl.

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