You can't go off of a press release, or an investor relations statement, ever. These are cookie cutter and do not reflect reality. Sooo many companies uphold their positive guidence to the very end. I have seen this many times as an inside observer of public companies. I am not necessarily a "naysayer", but I am negative on JMBA until I see evidence of a turnaround. I am much more likely to see it go up 25% and then buy in than try to find a bottom at this level. For now I am almost ready to take it off my watch list as their latest products are significantly overpriced crap ("Whirl'n" for $5 ?!?!), further evidenced by their deep coupon discounts.
If I owned I wouldn't sell, but I'm not buying - good luck.
You can easily drop $3.50 - $5.00 at any of the self-serve, pay by weight, yogurt places so popular today. So, I'm not sure the price is all that far out of line.
I think more of a concern for me is it is one more item that is labor-intensive. Like so many other things at Jamba, the biggest negative for me is that you often have to wait so long to get your product.
Chipotle, by the way, is a marvelous example of a company that has figured out to move customers in and out EXTREMELY quickly, while at the same time providing a quality product.
You are exactly correct except I weighed the Whirl'n and they were 8.13oz. So this is $.59/oz. Our local Frugo's is $.39/oz and MUCH better tasting. I will never buy another Whirl'n. The local Jamba is a franchise and I don't think they even made it right.
I'm doing my homework on JMBA, but all indications are not to buy yet.
Yes on Chipotle, they are just too expensive (P/E) for me to buy now.
It is neither. It is a speculative investment. I buy their smoothie kits at my grocery store and on rare occasion I will buy one of their overpriced smoothies at a franchise near my office. My gamble is that the brand move will make money and turn the SS Minnow around.
Is Karen Luey Maryann? or is she Ginger? White might be the professor if he succeeds in this turnaround story. In less than one month we will see.
If the company beats estimates again the stock will not go up very much. Alot of the losers will sell into the rally to try to recover money. Until this company beats estimates for six quarters in a row and is cash flow positive the stock will remain under $2.00. I never thought the stock price would go this low. Alot of shorts covered in this last downturn. What will hold the stock price down now is people selling to cover margin calls on their other losing investments and the overall market turbulence of uncertainty with the global economy.
Well, time to go to my afternoon job now that tennis season is unfortunately over. The shorts made some nice money on this last down turn. Congrads to those of you who bought in under $1.30. My lowest buy is at $1.45 so now I am bailing water out of the SS Minnow. I am not jumping overboard but yes this little boat needs either some good weather or a safe harbor. Nice call shorts you knocked it out of the park.