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Trade Of The Day: Jamba Juice ($JMBA)

|Includes:Jamba, Inc. (JMBA)

Jamba Juice ($JMBA) Jamba Juice is a restaurant retailer of fruit smoothies and "good-for-you" food products. It owns 307 stores and franchises 443 in the US. Internationally, it only has 19 outlets but licenses its products through others including Hershey's.

The company has been restructured to improve slumping margins and is embarking on an aggressive new marketing strategy. Clearly, it's positioning itself for major growth overseas while domestically it introduced JambaGO, a mini-smoothie shop designed for school cafeterias and college campuses. The company just signed a deal with Talbott Teas, a line of high-end designer teas that was recently featured on the TV show Shark Tank, which is part of its campaign to increase product offerings. With an expanding product line and global expansion plans, Jamba is showing a lot of growth potential. The company reports earnings on March 7th and today's breakout could be the start of a rally into that earnings date.

Technically, the stock just broke out of its $2 consolidation base after putting in a double bottom. It faces minor resistance at $2.20 and $2.60 and a break above both of those signals clear sailing to its 2010 high of $4. Options are weak but at a $2 price tag for the stock, who cares?

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in JMBA over the next 72 hours.

Stocks: JMBA