Be cautious here as expressed a few days ago. The full details of the negotiations between Services Acquisition and Jamba Juice are layed out in a merger proxy statement that was filed Wednesday. It states that Jamba Juice has 532 stores in 26 states, and is a lot less profitable than many investors had hoped for.
For the year ended June 2005, Jamba Juice had operating earnings of $2.84 million, down from $5.18 million in the prior fiscal year. Also - The company's unaudited financial statements originally reported operating income of $8.39 million in 2004.
Expect a some selling as this news is digested and a base is formed over the next week.
