Why is the Jamba Juice stock so low right now? - juice stock
Jamba Juice (JMBA) now stands at 60 cents. This seems very low for a company turnover of 23 million in 2007, until 317 million in 2008 increased.
Wednesday, January 20, 2010
Juice Stock Why Is The Jamba Juice Stock So Low Right Now?
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Of course there are some problems now. I do not think that is because it is a bad product, or how the weather have.
ReplyDeleteMost people do not drink fruit juice to stay cool. They drink because it is healthier. Most people do not drink coffee to keep warm. They drink because they are addicted to caffeine. Not admit, of course, but the chemical caffeine addict.
McDonald's (MCD) beat the pants of Starbucks (SBUX) coffee sales in the last quarter - in summer - warm weather. MDC is an increase of 8% of revenues were of coffee, SBUX while 8% of coffee sales have declined over the same period. So is time a factor in hot or cold beverages.
JMBA is the complement of trying for wraps and salads to its menu and marketing drum. SBUX also tried this by adding music CD's, teddy bears, and are sold his value on the other products that do not contribute their share prices.
People who JMBA going to go for one main reason. To buy juice, not for eating. JMBAstruggling to become profitable. While it increased sales may have experienced in the past, the net profitability of the key.
No matter what you earn, but what do you think is not it?
Net performance JMBA looks very bad.
http://finance.yahoo.com/q/ks?s=JMBA
I dare say that it will need the internal costs and expenses of problems that greater control.
Recently, prices have increased in order to improve the revenue, but I think this might reduce turnover.
Everyone needs to credit will not be good. The banks are risk averse, and get ready for lunch is like trying to win the lottery.
It seems that the Nasdaq has suspended the rules for delisting from the Stock Exchange for the moment, avoiding help in BK faster.
http://www.sfgate.com/cgi-bin/article.cg ...
This stock would not buy at any price. These areas could also be fun and tasty, but historically it is not, and listed companies.
Jamba Juice (JMBA) announced last week that it has a "poison pill" in the form of rights to purchase shares assumed [1]. However, the rights plan would see, they have nothing to do with the takeover defense. Rather, it should solve a more fundamental problem: the need for the company in cash. The assessment of depression, which led the poison pill that shows fear of investors that the company toward bankruptcy.
ReplyDeleteJamba needs an immediate review of the balance, restore investor confidence and ensure long-term survival of the company. This should be through equity, not debt, not by selling stores for pennies on the dollar to franchisees that are smart enough to be funded to recognize a good deal. A rights offering would be the best and most effective.
If the company stores were in good shape and business model has proven itself, the solution is simple: reduce costs and generate the development of new stores, cash and endure only for the next two years.
Unfortunately, Jamba can not afford to do that. Stores mustInvestment $ (I was probably 10 million light in my earlier analysis), and the concept should be developed so that not only seen as an expensive treatment. Why Jamba has to spend in order to survive. It is a terrible place for a company today, but I'm afraid that is the reality of Jamba.
To solve the credit line amounting to $ 25 million non-business problems. The market is smart enough to know that if the debt used to finance expenses in excess of cash flows, which can make everything worse, not better.
To attract investments in cash, the company has to cope with his other problem is the lack of a permanent director and a clear plan for success. Jamba has described some of the priorities of the administration, but no plan is taken seriously, at least, presented by the CEO who is running.
because nobody wants to pay up to $ 5.00 for a milk shake.
ReplyDeletealso because of the winter ... hot chocolate and coffee drinks are more frequent in winter
through the market ... Down alsmot awhile .. It's called "beta"
ReplyDeleteGettin think it's cool to go to Starbucks.
ReplyDelete