Jim Cramer: Jamba Juice, Weight Watchers, Koppers Holdings
Services Acquisition Corp., which is acquiring closely held Jamba Juice for $265 million, was recommended today by CNBC host Jim Cramer on his ``Mad Money'' show as demand for fresh-made juice drinks and smoothies soars.
The combined company, to be renamed Jamba Inc. (JMBA), will join brands such as Chipotle Mexican Grill Inc. (CMG) and Tim Hortons Inc. (THI), the doughnut chain owned by Wendy's International Inc., ``in the hot, hot, hot category,'' said Cramer, a market commentator and former hedge-fund manager.
Jamba is ``a great brand, has unbelievable customer loyalty and potential for enormous square footage growth,'' he said. The company, which has about 500 stores now, ``could have at least twice that many.''
Weight Watchers International Inc. (WTW), the world's largest chain of diet centers whose stock has climbed 20 percent in the past year, was also recommended by Cramer.
As various diet fads are abandoned , ``people are now willing to lose weight the hard way, by eating well, exercising and paying Weight Watchers a lot of money,'' Cramer said. With problems of obesity growing in the U.S., demand for weight-loss services offered by Weight Watchers will climb, he said.
Cramer also recommended Koppers Holdings Inc. (KOP), which makes carbon pitch and creosote that are used to produce aluminum and specialty chemicals and also used to coat railroad ties and telephone poles.
Other stocks recommended during the show include Under Armour Inc. (UA), Anglo American Plc (AAL), Multimedia Games Inc., Amgen Inc. (AMGN), International Game Technology (IGT), Sara Lee Corp., Kraft Foods Inc., Kellogg Co. (K), CVS Corp., BHP Billiton Ltd. (BHP), Home Depot Inc. (HD), Lowe's Cos., ConocoPhillips (COP), Chevron Corp. (CVX), Vitesse Semiconductor Corp. (VTSS), Ciena Corp. (CIEN), and Tata Motors Ltd. (TTMT)
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