There are plenty of stocks that have P/E =/> to SBUX and are still excelling in the market. (AMC, AOL, BMY, BURL, DPZ, etc--simple stock screener will show that) It's noted, but not a huge detractor. As far as explosive growth, it's not like there are going to be 10M new coffee drinkers every year... but the growth that does exist is that SBUX is building in markets that competitors (DNKN) can't reach (China, India, Africa, more in EU). The currency fluctuation (stronger dollar) will hurt their revenue on the overseas market, but with the stronger dollar it will allow them to leverage new coffee shops are a fair price in these markets. Additionally they are introducing some new tech for advance (pre) ordering their selection so customers don't have to wait in cue, etc.
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Coke may be the largest beverage seller in the world, and available at all locations... However, SBUX doesn't have to take into account nearly the R/D, bottling/distribtution, etc that KO does. In addition to this, the commodity (coffee) is falling and giving more room for
profit. The lower coffee prices and SBUX raising prices by 1% will also help increase revnue...
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I'm not exactly sure where they will go, but based on the research I did prior to buying in at @ $54/share I couldn't foresee any drop below this price. Based on what I mentioned above, I think there is a possibility to see the SBUX hit $70 as long as there isn't a melt down on the markets. Yes, I obv missed out buying it at a much better price--and missed some splits--but there is promise here.
My original question was for those that have traded or studied SBUX in the past... things like what makes it tick (up or down)? Is it as sensitive as AAPL or other "popular" traded stocks? Is there a better way to capitalize on SBUX then just holding long (ie. jump in before dividends and sell after earnings jumps, and repeat)? Do others those that own/studied SBUX still see value in holding long and if so, what is their forecast (I think $70+ in 12mo)? And is there anything else I missed that I should have reviewed/studied???
Pardon me, but where those you're BIG negatives?? I hope I don't have SBUX coffee in my eyes and misread your post (terrible P/E, lack of growth, not as big as KO, missed low hanging fruit, SELL/SELL/SELL). I am interested in your points and maybe I'm blinded by my own ignorance and fascination with the remaining markets they are going to enter into (recent articles linked). But you really didn't give me any solid reason to change my opinion--hence why I asked for someone that my have traded/studied this stock.
