Does Starbucks give you the shakes?
Full Article and Graphs
Does Starbucks (SBUX) give you the jitters? This is one stock that seems all but unstoppable. The total return to stockholders has been 127 % in the last 3 years which is about 275 % of what you would have gotten from a general index fund. Can this stock keep up the momentum or are we at a point that entry at this level is not desirable?
Barchart technical indicators:
1 - When there is a stock that has been on your watchlist for some time a temporary market dip might be an opportunity to enter into a position or maybe add to your present position
2 - Barchart 80% short term technical sell signal -- might be just a pull back signal
3 - Trend Spotter sell signal
4 - Below its 20, 50 and 100 day moving averages
5 - 13.42% off its recent high
6 - Relative Strength Index 42.47 and still falling
7 - Barchart computes a technical support level at 34.65
8 - Recently trading at 35.43 which is below its 50 day moving average of 38.07
Summary: Starbucks (SBUX) is selling at a 43% premium to the market but the premium may be justified. If the sales and earnings consensus is met savvy investors who buy on this dip could still see between 10.50% to 14.50% annual return over the next 5 years. The big question is buy now or wait. My prediction is those that wait will regret it.
Jim Van Meerten is a Marketocracy Master