Cramer's 'Mad Money' Recap: Smoothie Operator

Stock quotes in this article: SVI , CMG , WFMI , HNZ , WTW , BBI  

Click here for an archive of Cramer's "Mad Money" recaps.


Juiced Up

"I think it's time for you to buy Services Acquisition Corp. International(SVI Quote), ticker symbol SVI," Jim Cramer told "Mad Money" viewers Wednesday about the shell company that was nothing but a big blank until today.

Services Acquisition just bought juice and smoothie chain Jamba Juice for $265 million, and soon the company will be called Jamba Inc., he said.

Some say that the smoothie market could be the next big thing, Cramer said, "but we need to look at the cold, hard facts."

"Jamba, or SVI, or whatever you want to call it, will be joining Chipotle(CMG Quote) and Tim Hortons in the hot, hot, hot category, " he said.

The company has a great brand, customer loyalty and potential for a lot of square-footage growth, he said. And the company's margins during peak season have exceeded 20%, which Cramer said is "to die for" in food service.

But can the company execute? Jamba Juice started in California but has been able to successfully expand to "colder and less hippie-ish climes," which leads Cramer to believe that the company can pull off the "regional to national story." And that means more growth, he said.

The smoothies are sold in locations including Whole Foods(WFMI Quote), giving them cachet with foodies and health-conscious shoppers, and the company has a great management team, he said.

"The guys who bought Jamba Juice were running Blockbuster(BBI Quote) when it was still a good company in the 1990s," he said.

There is no Wall Street coverage of Services Acquisition, he said, so that means there's a chance to get in before word gets out and the stock absolutely soars. But the stock has already run higher, he said, telling viewers to use limit orders and to not buy into strength.

Live Free or Diet

Weight Watchers(WTW Quote) is back, Cramer said. Credit Suisse has been pushing the stock hard.
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