Glenn W. Welling, director and 10% owner of Jamba Inc. (JMBA, Financial), added 31,192 shares of the company on Feb. 13, according to the Securities and Exchange Commision. The purchases came in three separate transactions for an average estimated price of $9.63 per share.
Before his most recent transaction, Welling invested in 36,365 shares between Feb. 2 and Feb. 8. He now owns a total of 2,052,342 shares.
The company is a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages and snacks. The company was incorporated on Jan. 6, 2005. As of Dec. 29, 2015, it had 893 Jamba Juice stores globally.
Jamba has a market cap of $148.09 million, an enterprise value of $133.84 million, a price-book (P/B) ratio of 205.53 and a price-sales (P/S) ratio of 1.81.
According to GuruFocus, Jamba has a 5 out of 10 financial strength rating with no debt. The equity-asset ratio is 0.01. The Beneish M-score of -3.73 indicates the company is not a manipulator of its financial statements.
Jamba has a 2 out of 10 profitability and growth rating with an operating margin of -18.39%, a net margin of -18.96%, a return on equity (ROE) of -330.73%, three-year revenue growth of -14.90% and three-year EBITDA growth of 8%.
Over the past year, Jamba’s market price has declined an estimated 22% and is trading at a -7% discount to what guru Jim Simons (Trades, Portfolio) paid for his stake in the company during the fourth quarter.
The company’s momentum has been rising, as evidenced by its recent upswing in market price. Right now is a good time to take a position in the company because of its momentum and the fact it is trading at a discount.
The Peter Lynch chart below shows Jamba is trading slightly above its intrinsic value
Disclosure: Author does not own any shares of this company.
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