4-Star Stocks Poised to Pop: Jamba

Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, juice store operator Jamba (Nasdaq: JMBA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Jamba's business and see what CAPS investors are saying about the stock right now.

Jamba facts

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94.5% of the 794 members who have rated Jamba believe the stock will outperform the S&P 500 going forward. These bulls include Pilotguy05 and All-Star trustyfrog, who is ranked in the top 2% of our community.

Just last month, Piloyguy05 touched on the juicy trends working in Jamba's favor: "The health trend should continue as time goes on. Their captive audience is in the mid 20's and as that age group becomes older and has an increasing amount of disposable income, restaurants like this will become even more attractive."

Unfortunately, Jamba hasn't been quite as attractive to Wall Street. Last week, the company posted second-quarter results that came in well below estimates, and lowered its full-year sales guidance, to boot. With Starbucks as one of its fiercest foes in the cold drink space, and McDonald's gaining ground rather quickly, Jamba's restructuring efforts should continue to be far from smooth.

Nevertheless, several CAPS All-Stars like trustyfrug believe Jamba has the management team and brand power to successfully complete the turnaround over time.

[Jamba] currently has a solid new business plan that I really feel good about. They have cash flow positive stores & there seem to be plenty of willing franchisees to expand store count at a healthy pace. According to [Jamba], the company's research shows there are potential opportunities for at least 2,700 stores in the US. There are curently less than 800. Most importantly, there has been a focus to bring new stores into higher margin markets such as airports, college campuses and other promising venues first in contrast to the prior ways of setting up shop willy nilly. The current kiosk type locations are outperforming, so that's where the emphasis is being placed. ...

To leverage the brand, licensing plans are well under way. You can now find [Jamba] branded packaged frozen Smoothies, Ice cream, trail mix, kid's toy smoothie makers & more in various markets. ...

Very strong "healthy" brand with exceptional management. That is the value here.

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