SBUX at 34?

Discussion in 'Stocks' started by Fizber, Jan 25, 2007.

  1. Fizber


    I love how fast the street sentiment changes. Charging into the 4th quarter earnings call, traders bid it up to 40.00 and then dumped it. Oh and by the way the quarter wasn't that bad. It seems the opposite this time. We are at 34 dollars a share and dropping going into 1st quarter earnings. They report next Wednesday. I know it is a foolish task to bet on a conference call but as far as the long term international expansion anyone have any thoughts?
  2. I don't know about what they'll say regarding China, etc...I just hope they don't blame anything on the weather again! :cool:
  3. Fizber


    Yea the frappuccino excuse was pretty weak and I think definitely gave some of the longer term investors a shudder. To them it seemed like the signs of a maturing company. I think this is mainly because things were so good for so long. But I would keep my eye on this one. While same-store sales growth is very important I think the international market's potential is so great it would more than cover the same-store sales issue. Of course if the same-store sales begin to drop I"ll be concerned but deceleration in same-store sale growth doesn't worry me as much
  4. SBUX will hit 30 before it hits 40.
  5. Fizber


    Interesting prediction. You backed up a pretty bold statement with absolutely no supporting details. Would you perhaps like to elaborate?
  6. Print out the chart, turn it upside down and what do you see? Head and shoulders.

    There is some support at 34, but once it breaks through there is nothing until 28-30 area. I believe it will break through to complete the pattern that was started at the beginning of 2006. Once the pattern is completed then it will run to 40.

  7. Fizber


    For the short term it will not go too far below 34 unless they disappoint Wednesday. It comes down to that plain and simple.
  8. I would only buy this stock at $28 or under.

    You have to buy stocks when they go on sale.

    I just closed out my Goodyear position fully.

    Bought 2000 shares @ $10.98 back in late July.

    Just sold @ just under $25.

    I love clearance sales.
  9. Fizber


    When it is 45 dollars a share you will have a hard time finding it for sale at 28. Now again, I have no idea when it will be 45 dollars a share. It may take a nose dive first but in a year or so it will most definitely create new highs. And if it does drop I will greet it merrily buying even more shares :)

    I pick Starbucks for the longterm. On the coattails of good news I trade it. In the mornings I get my caffe mocha or drink a can of double shot. Those three statements sum up my relationship with Starbucks.
  10. I dont believe the earnings call will matter in any event. In a rising interest rate scenario, you undergo multiple compression like what happened last year.

    Last year, Bernanke was able to turn around the bond market by demonstrating that he would not raise rates. The cause for the bond market tanking this time around is oil producing nations liquidating bond positions. Even the fed meeting wont be able to cure that situation.
    #10     Jan 26, 2007