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A general optimism seized the markets today pushing oil to $73 on hopes of greater demand during the global recovery. As SmallCap stocks slowly picked up speed, Jamba Inc., (JMBA) http://www.jambajuice.com/ jumped out to capture a new 52- week high at $2.13. With $312 million in trailing twelve month revenues, I think this stock is a bargain.
Management thinks 'top-line, top-line, top-line' and is very aggressive in rolling out product and opening venues to increase its sales. Like all retail, JMBA has taken its hits, but management is waiting around: JMBA just introduced 'food' product into its 32 Hawaii locations. 'California Flatbreads' are less than 330 calories and fit with the healthy image the juice company has had since 1990.
If well received, the 'test market' of BBQ chicken on a crispy crust could make its way into all 735 JMBA locations consisting of 490 company-owned and 245 franchise stores. JMBA knows its niche markets too: it opened 9 college locations in 2009 and has 30 campus stores in total. If McDonalds ever rolls out smoothies, sales at JMBA might drop; but it takes years to roll-out new items and I think JMBA will have hit $4 by then.
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JMBA NVTL
Also getting a jump on the market today, Novatel Wireless Inc., (NVTL) http://www.novatelwireless.com/ investors are still riding high on getting a Windows 7 Compatible go-ahead from MSFT at the end of last week and the wireless broadband innovator introducing its Ovation MC998D product for email and download rich multimedia content. At $12.21 a share, and with nearly $300 million in trailing twelve month revenues, I think this S&P SmallCap 600 company will turn plenty of top-line sales with its playing-card sized Intelligent Mobile Hotspot called Mi-Fi that is the first truly mobile videoconferencing solution available in the marketplace.
There's money to be made here and NVTL management knows it; showing up on CNBC and every talk show that will let them introduce the Mi-Fi. This stock is a dollar and some change off its $13.70 52-week high and I put a 3-Month target on NVTL of $15.66 or 30%.
GMX Resources Inc., (GMXR) http://www.gmxresources.com/ took a nice jump above $17 this morning and I'm going to fall in line with the research houses on GMXR and consider this a 'buy' or an 'overweight' simply because its slow and steady production increase of natural gas at its rigs.
For the three months ended September 30, 2009, GMXR estimates it has 3.4 billion cubic feet equivalent natural gas, which is in-line with previous Company guidance. Q3 09s estimated production is a 2% increase from 3.3 billion in Q2 09. Retail gas and energy prices are suppose to decrease this winter, but I see the loss on the wholesale end and not with the producers. Last year GMXR was overvalued when it topped $41 a share, but at less than half that price and being a 'pure play' energy stock; I believe it has room to move up 25% in price.
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GMXR RPTPD
A 52-Week High Today
Finally, a drug stock that is affordable at $4.12 and has good news coming out of its pipeline. Raptor Pharmaceuticals Corp., (RPTPD) http://www.raptorpharma.com/ management said today the Company's experimental treatment for a progressive form of liver disease in adolescent patients met its key goal in a mid-stage trial. This is right on the heals of RPTPD merging with TorreyPines Therapeutics in mid-September.
RPTPD has Cysteamine and Convivia in Phase II trials and a number of drugs in pre-clinical development. As the trials underway move into Phase III and then into commercialization, look for RPTPD to pick up some major alliances with bigger drug manufacturers and that will make everyone wish they had bought at $4.12. Buy.
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