Jamba Juice Worth the Squeeze for Active Owners Fund

By: SumZero Staff | Published: August 09, 2018 | Be the First to Comment

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Active Owners Fund manager, Ben Terk published a long call on Jamba Juice to SumZero in April with a target price of $13/share (~45% upside from $9.44). Since then, his idea has been featured in Barron’s and endorsed by Jamba COO, Joe Thornton "as something [he] would write" on Twitter.

If that wasn’t enough positive momentum - Focus Brands (Cinnabon, Aunt Annie's, Moe’s Southwest Grill, and more) announced the acquisition of Jamba at $13/share earlier this month. Following the pending $200M transaction, Jamba will operate as a privately-held subsidiary of Focus while maintaining its independent brand.

"Over the past three years, the Company has transitioned from company-owned and operated units to an asset-light, franchising model with over 90% of the Company’s units now franchised. The Company further strengthened relationships with franchisees by closing all of the self-serve machines in Target which was an ongoing source of brand dilution and contention."

Active Owners Fund is a Los Angeles-based hedge fund, running a long/short strategy focused on small cap, publicly-traded, North American equities. Founded in early 2011, the fund has outperformed its HFRI benchmark by 13 percentage points YTD (as of July 2018) and Terk has amassed a following on SumZero for his top-ranked ideas since 2012.

View the JMBA Idea on SumZero Buyside


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