Monday, December 10, 2007

Bought Jamba

I did decide to do a trade. I wasn't planning on it because I didn't have a stock I was watching very closely. That was until I looked at my regular portfolio where I own shares of Jamba Juice. I obviously watch the shares in my regular portfolio quite closely, and when I look at the action on Jamba, I like what I see.

I've owned Jamba for a while, and I've taken a bath in it. I've lost probably about 30% of my cost basis in that stock over the last few months. OUCH! But recently Jamba announced a deal with Nestle to sell Jamba Juice in stores. The stock reacted well to that news, but not that well. But since then, the stock is up 50%. Yes that's right 50%.

But the stock is VERY dangerous. It is a very volatile stock, but I liked the fact that it went above it's resistance of $5.00 today. I'm not sure it's a breakout yet, so I only put a small position on and want to watch the movement through the end of the week. I bought 496 shares of the stock at $5.03. I might buy more depending on what the stock does over the next two days. If the stock slips under the $5.00 mark and gets to about $4.50, I will probably close out the position having taken a loss of about 10%



  1. Jamba is yummy :D
    But I have no car, and Keva is within walking distance so...

  2. As long as you are drinking some sort of smoothie I'm happy :)

    I like the smoothie story. Lots of people compare it to Coffee just 15 years ago. The idea that there could be a Starbucks was absurd. But sure enough, they made it a staple in what people had when they went out.

    I see Smoothies following a similar path. Still a Niche today, but with explosive growth potential. Maybe not as big as Coffee but big. Jamba is the biggest player in that market right now, and they are the only ones who are public.

  3. I love smoothies, especially from Juice It Up. They're a growing chain, still small. When that company goes public though, I'll definitely invest in them.