4. Jamba gets juiced
Jamba, Inc. (NASDAQ:JMBA) blenders aren’t spinning as fast as investors would like.
The parent company behind the 829-unit Jamba, Inc. (NASDAQ:JMBA) Juice smoothie chain slipped after posting disappointing revenue growth in its latest quarter.
Revenue inched 2% higher, to $67.3 million, well short of the 7% growth that the pros were targeting. Earnings grew substantially faster, and comps have been consistently positive over the past two years. However, after widening its menu Jamba, Inc. (NASDAQ:JMBA) really should’ve been able to take advantage of the favorable tailwinds. Folks are eating healthier. The improving economy is giving consumers more money to spend. It’s been a hot spring and summer, making a refreshing icy fruit beverage all the more enticing.
All of these factors are working in Jamba’s favor, yet all we get is 2% growth? Next time, Jamba, can shareholders get a free boost with that?
5. Windstream blows past a yield sign
Some companies can’t take a hint.
Windstream Corporation (NASDAQ:WIN) is sticking to its quarterly payout policy of $0.25 a share, even though the fading regional telco hasn’t earned enough to cover its hefty dividend rate for a couple of years.
We know the drill. Folks are nixing their landlines, and while Windstream Corporation (NASDAQ:WIN) and other regional telecommunications providers are trying to offset this by providing other services, the long-term outlook isn’t very positive.
Things are so bad that Windstream Corporation (NASDAQ:WIN) recently declared that nearly two-thirds of the distributions it shelled out last year were return of capital.
It may get even worse. Revenue only dipped slightly, but net income plunged 22%, to $0.06 a share. How much longer can you keep paying out quarters when you’re only making pennies?
Beware of Windstream’s tempting 12.1% yield.
The article This Week’s 5 Dumbest Stock Moves originally appeared on Fool.com and is written by Rick Munarriz.
Longtime Fool contributor Rick Munarriz owns shares of Jamba. The Motley Fool recommends Trex. The Motley Fool owns shares of Trex.
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