Jamba Insider Continues to Load Up on Shares

Director adds 120,200 shares

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Feb 23, 2017
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Glenn W. Welling, director and 10% owner of Jamba Inc. (JMBA, Financial), continued his buying streak for the month by purchasing 120,200 shares of the company in three separate transactions, according to an SEC filing.

Welling purchased 100,000 shares on Feb. 17. On Feb. 21, he added 8,100 shares. His final purchase of 12,100 shares was on Feb. 22. He paid an average price of $9.78 per share. He now owns 2,440,555 shares of the company.

The company is a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages and snacks. It has a market cap of $150.85 million, an enterprise value of $136.6 million, a price-book (P/B) ratio of 209.38 and a price-sales (P/S) ratio of 1.85

According to GuruFocus, Jamba has a 5 out of 10 financial strength rating with no debt and an equity-asset ratio of 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. It has 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 -14.9% and three-year EBITDA growth of 8%.

Since the purchases, Jamba’s market price has gained an estimated 0.61%.

Guru Jim Simons (Trades, Portfolio) purchased a 42,460-share stake in the company during the fourth quarter. Since then, Jamba’s market price has declined an estimated 5%.

The Peter Lynch chart below shows Jamba is trading above its intrinsic value.

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Disclosure: Author does not own any shares of this company.

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