Every year Jamba Juice (JMBA) goes through a cyclical cycle of bull and bear. You will notice in the fall and winter time it is always bearish and it will bottom out. In the spring and summer it becomes bullish and it rises high. I personally think this is a great value investment, but for those that like to play trends, you can make more money playing this range. The stock analysis looks good for this as a swing trade as well.
If you take a peek at the stock chart, you will notice it has already reached the bottom in the October and November months. This is a double-bottom and it has strong support. I’d expect JMBA to make new highs around $19 in the 2014 year.
I have gathered some fundamentals that will help you build this case. First, the company is debt free. Second, they are ramping up on JambaGO which is their express line of Jamba stores. Target will be one of the stores that will be opening JambaGO. I also expect them to continue growing the JambaGO in schools which should have a big impact for the long-term. Third, they are opening franchises internationally. This should continue to develop their brand. Finally, they posted their first operating profit in 2013.
Leave a Reply